The National Economic Prosecutor’s Office (FNE) launched against Google: the multinational headquarters in California, the USA, and one of the largest companies in the world.
The entity led by Jorge Grunberg entered a requirement for dominant position abuse against technology, accusing it of imposing, in the Android operating system, restrictions on free competition in the applications distribution markets and distribution of digital payment goods within applications, at least since 2019.
In its legal action, presented before the Court of Defense of Free Competition (TDLC), the Prosecutor’s Office requested “a series of measures that guarantee the term of behaviors contrary to free competition” and that Google is imposed on the payment of a fine for fiscal benefit of 101,482 UTA, that is, about US $ 89 million.
Questioned practices
The FNE said that Google imposed restrictions on the distribution of applications by channels other than its virtual store, Google Play Store. Among these, they have to demand that mobile devices manufacturers pre -install the store in a preferential place as a condition to distribute Google applications; prevent the distribution of alternative stores on Android mobile devices from Google Play; and hinder the download via web of applications, by unnecessary frictions to execute this function.
“The above has resulted in that both developers and consumers depend almost exclusively on Google Play as an applications distribution channel in the Android ecosystem,” the Prosecutor’s Office said in a statement.
On the other hand, the entity accused that in the market distribution of digital property goods, within the applications -as payment subscriptions to streaming, music, videos, electronic books and items within applications such as virtual currencies, among others -Google forced developers to distribute their goods using exclusively an integrated billing system of their company, called Google Play Play’s Billing System, and which has forbidden to inform or redirect other methods of alternative payments.
“These anti -competitive practices have allowed Google to consolidate Google Play as the main application discharge channel and limited the alternatives of developers and consumers,” said the National Economic Prosecutor (S), Felipe Cerda.
Google market power in Chile
The Prosecutor’s Office reported that he began investigating these practices in October 2022, based on the complaint of an individual.
“After carrying out the corresponding proceedings, the FNE found that Google enjoys a substantial market power nationwide, at least, in the applications distribution markets, where it has 95% market; and distribution of digital payment goods within the applications in the Android operating system, where its participation exceeds 99%,” said the FNE.
He added that, these percentages, added to the fact that potential competitors face significant entry barriers for the network effects, sunken costs derived from innovation investment and the same restrictions imposed by the required one, allowed to verify the dominant position of Google nationwide.
However, he asked the TDLC to demand measures such as: not conditioning access to its products or services to the subscription of agreements that impose the obligation to pre -install Google Play in specific locations; allow the distribution of third -party application stores; and eliminate all kinds of actions or messages that discourage the download of applications by other ways.
