Alphabet’s Google told the Second Supreme Court of Europe on Wednesday that paying mobile phone manufacturers to preinstall only Google search on their devices is not to prevent competition, but is necessary for Android to seize market share from Apple.
Google spoke to the ordinary courts on the third day of the week-long hearing as it tried to get the judge to dismiss a record 4.3 billion euros (approximately Rs 37,185 crore) EU antitrust fines and the European Commission’s order to relax searches for Android devices The grip on the engine.
The EU competition watchdog disputes two deals with mobile phone manufacturers. One is the cost of only pre-installing Google search on their devices, called a revenue sharing arrangement (RSA), because these deals shut out competitors outside.
Google lawyer Assimakis Komninos told the court that this is not the case. The payment is only to encourage mobile phone manufacturers that have already made money from other applications to provide a place for Android.
“Google must provide a source of offsetting revenue. Incentivize them to open up and adopt the Android platform. At the same time, RSA also helps them keep prices down and compete more successfully with Apple,” he said.
“And obviously, Google got a promotional opportunity, the only pre-installation, which allowed it to invest in a free operating system (operating system), a free application store, and so on.”
Most importantly, RSA only covers 5% of the market, Komninos said.
Committee lawyer Nicholas Khan rejected this statement.
“What they worry about is that competitors gain traction,” he said, and RDA is “the pinnacle of Google’s interlocking practice.”
A judgment may be made next year. The case is T-604/18 Google vs European Commission.
© Thomson Reuters 2021