Google will stop restricting competition in connection with Google Automotive Services and Google Maps Platform

Google (Alphabet Inc., USA) has offered the Bundeskartellamt commitments to end several restrictions of competition in connection with Google Automotive Services and Google Maps Platform.

Andreas Mundt, President of the Bundeskartellamt: “I am pleased that we were able to reach an agreement with Google which will lead to direct improvements in the economic sectors affected. Google’s commitments have the potential to effect far-reaching changes in the market. Without the current restrictions, customers will have more choice and new opportunities will open up for Google’s competitors.”

Google Automotive Services

The range and significance of digital services used in vehicles via in-vehicle infotainment systems have continuously increased over the last few years. In addition to a map and navigation service, these systems today usually also have an app store installed which makes a great number of other services available. Google Automotive Services, consisting of Google Maps, Google Play and Google Assistant, is an offering enabling the use of such services in in-vehicle infotainment systems, whose significance is likely to further increase in the future. Until now, it has not been possible to source the services contained in Google Automotive Services as separate stand-alone versions.

Andreas Mundt: “In future it will be possible for vehicle manufacturers to choose freely between services from different providers and to combine them according to customer needs. This opens up new opportunities for alternative providers. For example, they can cooperate with vehicle manufacturers to develop new in-vehicle infotainment solutions.”

Google has offered the Bundeskartellamt commitments under which it will license the services contained in Google Automotive Services also as separate stand-alone versions. In addition, Google will remove restrictive contractual provisions which have created incentives for customers to use Google services, including provisions on default settings or participation in advertising revenue. Google has also committed to create the necessary conditions to enable interoperability with third-party services.

Google Maps Platform

A large number of businesses, including logistics, mobility and delivery service providers, use B2B map services. With Google Maps Platform, Google is by far the most important provider, licensing services such as access to maps, navigation and traffic information, address validation, location-based search and points of interest. In particular with regard to local search and information on points of interest, Google has a unique position which it was able to achieve due to the widespread use of Google services by end customers.

Andreas Mundt: “Until now, combining Google’s various map services with third-party services has only been possible to a limited extent. These restrictions have now been removed, giving customers more choice and flexibility. In future users can integrate the best-suited and lowest-priced services into their applications and freely develop alternative solutions.”

Google has committed to remove the contractual provisions restricting the combined use of Google’s map services and map services from other providers, such as HERE, Mapbox or TomTom. In future, map content provided by Google may also be displayed on third-party maps, such as OpenStreetMap maps.

In addition to the commitments relating to Google Automotive Services, this allows vehicle manufacturers and suppliers to use and combine Google Maps services in infotainment systems with third-party services or with services developed in-house.

The Bundeskartellamt has today issued two decisions declaring Google’s commitments binding and concluding the proceedings.

Effect reaches beyond Germany

The effect of Google’s commitments is not limited to Germany. The commitments apply to automotive services for in-vehicle infotainment systems in passenger cars that are or may in the future be registered in Germany. As the conditions for registering vehicles are standardised across the EU, the commitments cover the entire European market. Due to the fact that it is common practice in the automotive sector to develop uniform systems which can be deployed internationally, the commitments effectively also apply to in-vehicle infotainment systems used in other countries and regions.

With regard to Google Maps Platform, the commitments to remove the contractual restrictions will, in any case, cover all license holders of Google Maps services with a billing address in the European Economic Area.

New provisions for large digital companies

The Bundeskartellamt conducted the proceedings on the basis of the new provisions for large digital companies (Section 19a of the German Competition Act – GWB). Pursuant to these provisions, the Bundeskartellamt can, in a two-step procedure, more effectively prohibit companies which are of paramount significance for competition across markets from engaging in certain anti-competitive practices. In addition to the Google (Alphabet Inc.) proceedings, the Bundeskartellamt has already initiated or concluded proceedings on the basis of these provisions against Amazon, Apple, Facebook (Meta) and Microsoft. In its decision of 30 December 2021 the Bundeskartellamt had determined that Alphabet Inc. is of paramount significance for competition across markets (see press release of 5 January 2022).