Alphabet/Google Subject to New Abuse Control Applicable to Large Digital Companies

The German Competition Authority (“the Bundeskartellamt”) has delivered its decision that Alphabet Inc., Mountain View, USA, and therefore also its subsidiary Google, is subject to extended abuse control by the competition authority on 5 January 2022.

The Bundeskartellamt has delivered its decision that Alphabet Inc., Mountain View, USA, and therefore also its subsidiary Google, is subject to extended abuse control by the competition authority.

The Bundeskartellamt holds that Google is of paramount significance for competition across markets within the meaning of Section 19a(1) GWB. The company has an economic position of power which gives rise to a scope of action across markets that is insufficiently controlled by competition.

In particular, due to the wide reach of its services Google also has excellent access to data relevant for competition. Google’s large user base, its widely used advertising services and the large number of user data it can collect across services and partly also across devices allow Google not only to market targeted adverts but also to continuously develop its services. The competitive advantage resulting from this access to data and other resources, such as the “Google” brand, can be used as shareable inputs in many ways across markets. This makes it easier to operate, improve and expand existing services or develop entirely new ones. Lastly, Google’s paramount significance for competition is evident in its market capitalisation, which is one of the highest worldwide and reflects Google’s large financial power.

The validity of the Bundeskartellamt’s decision is limited to five years in accordance with statutory provisions. Within this period Google is subject to special abuse control by the Bundeskartellamt in Germany as set out in Section 19a(2) GWB.

You can find the full text here.

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Zumbul Attorneys-at-Law

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