EU's record penalty against Google: That's what regulation might look like

Android, Chrome, YouTube and a supremacy in the online advertising market: Google's market power is not just the decision of the European Commission to award Google a fine of 4 , 34 billion euros, a hot topic in Brussels.

One who pleads for a regulation of the Internet giant for years and accuses of this abuse of power is Thomas Höppner. The Berlin lawyer was in this case one of the most important plaintiffs and represented the badociation The Open Internet Project, an badociation of more than 500 digital companies and European media, as well as German press editors BDZV and VDZ in Brussels.

"Google tries to tease the Commission"

For Höppner, the Commission's decision is long overdue: "The EU has long underestimated the sovereignty of Google's information," says the lawyer in conversation with VIP News. Despite the new conviction, the company is still on the road to confrontation with the EU, said Höppner, who points out the already numerous penalties in the past: "Google agrees to tease the Commission . "

Although the Gigant search engine, which includes services such as the market-leading Chrome browser and the YouTube video platform, objected to the Brussels decision, the Commission's requests must to be satisfied first. For users, it's good news. "Smartphone users will soon have more choice because manufacturers will have more freedom in the future for the applications they pre-install on their devices," says Höppner. Exactly the practice that manufacturers like Huawei or Samsung had to pre-install Google services on smartphones in order to offer users access to the Google Play Store and use Android as the operating system, has now put an end to the EU.

Record well below the maximum possible

Google must now shell out 4.34 billion euros. This was ordered by EU Commissioner for Competition Margrethe Vestager. It could even become even more important if the US company does not allow more competition in Android apps within 90 days. Google's luck: With the punishment, Commissioner Vestager was still well below the maximum possible amount of 9.5 billion euros. The parent company Alphabet has achieved an annual business turnover of about 111 billion dollars in 2017. (95 billion euros).

Google resisted the allegations on Wednesday. "Today 's decision rejects the business model that supports Android," said Sundar Pichai, general manager of the group. In fact, the operating system "more choice for all, not less."

Höppner considers the licensing fees for Android improbable

Höppner sees it differently. The control over the applications and their user data is next to the Google search, the Höppner called the "cash cow" of the company, the central economic model of the Internet giant, as the # 39, said the lawyer in conversation with VIP News. "Nevertheless, I can not imagine that Google will charge royalties for its Android operating system in the future, which would compromise the supremacy in the smartphone market," says Höppner. Regulation that leads to competition in the digital economy, look? According to Höppner, the EU should be inspired by the regulatory approach of the telecommunications industry. This is generally considered very successful and effective as opposed to the postal or rail industry. For the digital economy, as for telecommunications, a dynamic approach is needed, according to Höppner, because the market and all its technologies are constantly evolving.

"If you settle, you have to separate services into individual markets," asks the antitrust expert. On this basis, one could, for example, regulate the search engine market. "Google could be required to give search engines access to real-time search data for a reasonable price," says Höppner. Competition in this area would then be guaranteed again and, according to the expert, other search engines and browsers such as Yahoo, Cliqz and Qwant would again be in the users' field of view.

What is Google?

Google? Media company, software company or search engine provider? Because it is of paramount importance, if you want to regulate. According to Höppner, there is no ultima ratio anyway. It recommends a three-part regulatory approach from the point of view of media and competition law, as well as the unbundling of special services so that their (unequal) treatment becomes more transparent. A promising but long journey.

For Vestager, the resolute European Commissioner, it is not the last time that she imposes a fine on the deal against Google in Brussels. At least, the American society does not seem to want to give up the dispute with the EU.