Exclusive-U.S. probe of Google Maps picks up speed -sources -Breaking
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© Reuters. FILE PHOTO – The Google Maps logo can be seen on this smartphone illustration, taken September 15, 2017. REUTERS/Dado RuvicParesh Dave & Diane Bartz
WASHINGTON, (Reuters) – The U.S. Justice Department is reviving an investigation into Google Maps in order to find out if illegally bundling of the service with other Google products stifles the competition. According to two sources with knowledge of the matter.
In late 2020, Alphabet (NASDAQ) Inc was discovered. The investigation had been ongoing until recently when the source said investigators reopened their inquiries.
Google claimed it is willing to cooperate with regulators. The Justice Department refused to comment.
Two components make up the probe.
The other part is focused on apps that can be used in cars’ infotainment systems. Google Automotive Services bundles Maps with the Google Play app store and Google Assistant. One source claimed that car companies cannot mix Google Maps and voice assistants from smaller competitors.
Google replied that it provides the best user interface and that, in certain cases, an alternative voice assistant may be able to function with Google Maps.
Another component is focused on website and app developers. Specifically, the department is looking at Google’s requirement that if a website or app uses one Google technology, say Google’s location search, the website or app developer cannot use maps or other technologies developed by Google’s rivals, the two sources said.
In a Big Tech Staff Report issued in 2020, a congressional antitrust panel found that Google enforces the provision aggressively and forces developers to choose “whether they will use all or none of Google’s map services.”
Google stated that its policies aim to prevent poor user experiences. It noted that incorrectly mixing information from one map with one on Google Map could result in errors. Google also stated that the policies are based on restrictions that partner companies place on Google using their data.
The policies have some exceptions, and Google added that developers “are also free to use other mapping services in addition to Google Maps Platform – and many do.”
MONEY AND Data at Your Fingertips
Two developers revealed to Reuters in the past year they had received violations notices from Google for mixing Google Maps data with other map providers. In some instances, the developers claimed that Google Maps was less costly or had more detail than competing alternatives.
Developers spoke on condition anonymity to avoid retaliation Google. They also voiced concern over the new privacy settings for Android users that may limit the data collection by competitors mapping companies.
Money and data are at stake, as well as information about people and places. Google will not disclose the sales of map-related licenses separately. Google has increased mapping fees over time and linked the company to its Cloud unit. Investors are interested in the growth of these sales.
Google also has a long history of using its mapping services, which allows it to gather more data and maintain its dominant position over other options.
Although it is legal to tie products together, antitrust enforcement officers have intervened when this bundling was not in the best interests of consumers.
The government filed suit in 1998 Microsoft Corp (NASDAQ) for violating antitrust law, allegedly by attaching its operating system to Internet Explorer to destroy rival browser Netscape.
One source said that there is no evidence the staff of Google Maps investigation has recommended that they sue.
Google is already fighting the lawsuit that was filed by the Department in 2020. It accuses it of violating antitrust laws to keep its dominant position in search and advertising. In 2023, it will go to trial.
Long-expected lawsuits against Google for its control of online advertising have been expected. According to one source, this probe is much more extensive than that into the map business.
Due to the excessive number of merger trials and reviews, the antitrust enforcer may have difficulty wrapping up these long-running probes. Two more merger trials are scheduled for April, and another two in August.
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