Google went hard on benefits Android has created, creating platform that spurred competition. It said it has right to promote Android & not rest on its laurels.
EC said: G “gave itself the laurel wreath before race had started”/1
Google said EC had failed to prove preinstallation was anticompetitive because other apps/services could be downloaded easily & accessed through browsers.
EC said G execs knew full well their success rested in “not making its services optional.” /2
Consumers argue that there is a “status quo bias” where users stick with the stuff that comes on the phone.
Google argued previously that there was nothing on behavioural economics in the @EU_Commission#antitrust decision & doubting their value here /3
Thomas Höppner, representing German publishers, had a smart response, pointing to jobs ads at Google for behavioural economists, showing the company saw this strand of science as highly valuable.
Google also said revenue share deals were “minute” & therefore had no effect /4
EC said while their coverage was small it was a “succulent slice” of the market that Google wanted to capture.
Gigaset, supporting Google, raised an interesting legal argument over the standard of proving the case. The standard has dropped from “foreclosure” to the lesser…5
… test of “competitive advantage that can not be offset.”
Big Tech should keep its eye on this. Could spell trouble for them in the future by making it easier to prove their conduct is abusive. At least, that may be their fear.
Google finished by saying:… /6
“Billions of people use our search engine because it’s the best, not because of dominance abuse.”
So, what now?
Judges go off to draft the judgment. Will be at least 9 months, I reckon. Then whoever loses appeals it again to the Court of Justice. Probably. /7
General impressions:
- court did a very good job of exploring the issues; this was a comprehensive hearing; no doubt
- no discussion of “counter factual” raised eyebrows a bit
- Google made the most progress with judge on fact that revenue share deals had limited coverage /8
- EC case made the most progress with judge on claim that anti-fragmentation rules stopped competition emerging from other Android “forks”
- the proceedings were remarkably cordial. Just a few little jabs, but otherwise a respectful atmosphere all round. /9
- I suspect both sides will be happy with how it went. No real knock-out blows either way, and everyone had a good crack at attacking/defending the decision. No regrets.
And that’s it.
Hope you enjoyed it. This is a huge case. I’m off to bed /ends
Addendum: if you haven’t had enough of me. And you want to hear the same again via the spoken word, then here’s the podcast recorded this morning
This will be a set-piece affair & judge already indicated last night he’s done with questioning. So, it’ll be more like:
Lawyers use this session to a) hit their strongest arguments again, b) address some lingering doubts by the judges to try to change their minds, c) make sweeping statements about the importance of X or Y for the future of the law/business. /2
Danish blue cheese came up repeatedly over 4 days as an analogy for market share, due to the Danish judge leading the questions. Expect some tortured references to that. /3
Last volley from #GoogleHearing today & it was important.
EU judges wanted to know: if we side with Google on one slice of their case does it destroy the whole @EU_Commission#antitrust decision?
Essentially, court is exploring the prospects of a partial @Google win /thread
This was all couched as "hypothetical" by judge Frimodt Nielsen (& I've seen other hearings where this happens) but it shows court is working out consequences of accepting at least parts of @Google appeal.
Why is this a tricky legal?
Well, funny you asked. Let me tell you. /1
Imagine the EC decision is a Greek temple with four pillars.
@EU_Commission says each of the four pillars is an infringement of EU law & the temple overall is a big single overarching infringement. So, there are two strands to its case: the 4 pillars & the temple itself. /2
Google took on the "staggering" antitrust fine in its pleas today, saying it should have been less (or zero) given it couldn't have known that EC would hit an open platform like this.
EC said: the case was about tying software to operating systems. You knew about that already/2
In fact, @sundarpichai had blogged about @Microsoft doing that with its browsers. So, come on guys, it wasn't out of the blue for you.
Break for lunch in #GoogleHearing at ECJ. Here's what happened this morning:
- Google argued that EC introduced new elements into its investigation (an AEC test) & because it did this in a letter instead of a charge-sheet, Google couldn't have a private hearing on it /1
- if G had had a hearing, it could have better defended itself against accusations of dodgy revenue-sharing agreements w/ phonemakers
- so, the procedural failure should mean court annuls this part of decision
EC aint buying this:
- says Google opted against hearing after SO /2
- the Letters of Facts just "refined" the "provisional" AEC test set out in SO, in light of Google's own defense
- and AEC test is only "one element" of the revenue-share case.
Interesting interaction with Judge Marcoulli who asked about relevance of UPS ruling (C-265/17 P) /3
Day4 of #GoogleHearing is upon us: they'll discuss procedural irregularities & the mega 4.34bn fine.
On procedure:
- Google says EC should have sent it formal charges (and not a so-called Letter of Facts), since this would have triggered a right to a closed-doors hearing. /1
- Not doing so deprived it of the right to be heard
- Google also says EC didn't record minutes of interviews with other companies sufficiently. Again, this means its defence rights were harmed.
- EC says: the LoF had no new charges, so it didn't need to be an SO. /2
- And also Google gave up right to a hearing when it didn't have one after getting the first SO.
- as to interviews: EC says it doesn't have to record every last utterance of an informal chat as an "interview."
On the fine:
- Google says it's the biggest ever in history /3