German competition authority finds Google's cross-market significance

German competition authority finds Google's cross-market significance

Bundeskartellamt can proceed against Google under the recently introduced Section of the German Act

The German competition regulator Bundeskartellamt has published a decision determining that Google fulfills the criteria for companies having paramount significance for competition across markets.

The Bundeskartellamt can now proceed against the technology giant under the recently introduced Section of the German Act Gesetz gegen Wettbewerbsbeschränkungen (GWB). It limits the anti-competitive effects of the large digital companies in the digital economy.

The Bundeskartellamt initiated proceedings against Google in May last to determine whether the company was of paramount significance across the markets. It found that the vast range of services offered by Google was highly sought-after and widely used by businesses.

It holds more than 80 percent of the market share for the general search services in Germany and is a primary search-advertising provider. Google is thereby in a dominant position and can access a "broad and deep database and further consolidate, expand or otherwise use its position to its own advantage without sufficient control by competition."

In announcing the decision to Alphabet Inc and its subsidiary Google, to extend abuse control, the President of Bundeskartellamt Andreas Mundt stated, "This is a very important step. Based on this decision, Bundeskartellamt can now take action against the specific anti-competitive practices by Google.

"We have already started to look into Google's processing of personal data and to deal with the Google News Showcase issue in more detail. At the same time, we are vigorously conducting other proceedings against Amazon, Apple and Meta (formerly Facebook)."

The Bundeskartellamt is expected to draw upon this decision in its ongoing proceedings examining Google's data processing terms and News Showcase service. The competition regulator is also investigating Facebook on similar grounds in proceedings relating to the link between Oculus and Facebook.