UPDATED 23:04 EDT / MAY 13 2021

POLICY

Google gets hit with $123 million fine in Italy for anticompetitive behavior

Italy has slapped a 102 million euro ($123 million) fine on Google LLC for abusing its market dominance.

The Italian Competition Authority said today that the company had violated Article 102 of the Treaty on the Functioning of the European Union by preventing the release of an Italian-made app.

“Google holds a dominant position allowing it to control the access of app developers to end-users,” said the authority.  “About three-quarters of smartphones in Italy use the Android system. Google is a major global player in the digital economy and relies on a very significant financial strength.”

The app in question, JuicePass, was created by a firm called Enel X Italia. An e-mobility app designed for Android Auto, it allows users to use other apps safely while they are driving. It also helped drivers of electric vehicles find and reserve charging stations and manage charging sessions. Google reportedly has prevented the app from appearing in Android Auto for two years.

“By refusing Enel X Italia interoperability with Android Auto, Google has unfairly limited the possibilities for end-users to avail themselves of the Enel X Italia app when driving and recharging an electric vehicle,” said the authority. “Google has consequently favored its own Google Maps app.”

Unsurprisingly, Google said in response that it disagrees with the decision and it isn’t thwarting its competitors’ success. “There are thousands of apps compatible with Android Auto, and our goal is to enable even more developers to make their apps available over time,” the company said in a statement.

Google has also been sent a cease-and-desist letter demanding that the company “stop the abuse” and allow the app and similar apps to appear in Android Auto. Google will now be monitored to ensure it is following imposed obligations stated in the letter.

The fine may seem hefty, but with Google’s parent company Alphabet Inc.’s reporting a first-quarter profit of $17.9 billion, it’s more like loose change.

Photo: Edgar Jiménez/Flickr

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