Brussels to investigate Google's Android platform

Brussels will launch a formal investigation into Google's Android smartphone platform on Wednesday, opening a fresh front in the EU's antitrust battle with the US group.

As well as accusing Google's search business of breaking antitrust laws, Margrethe Vestager, the EU competition commissioner, will unveil a separate probe into whether Google foists uncompetitive terms on smartphone providers using Android.

The European Commission has informally examined Android for almost three years and strongly hinted that it has some concerns in the wake of complaints from companies including Microsoft and Nokia, which make the rival Windows phone range.

While widely expected, the formal launch of an investigation will nevertheless be a blow to Google and add a further layer of complication to its regulatory travails in Europe, which touch on everything from privacy policy to alleged search bias.

According to people familiar with the planned investigation, the commission is to focus on two main areas: the distribution terms for Google's "suite" of apps, and the compatibility tests to become an official version of Android-carrying Google apps.

Google strongly denies any wrongdoing and argues Android is an open platform that "fosters competition". It stresses that handset makers, carriers and consumers can decide how to use Android, including which applications they want to use. Both US and Korean antitrust authorities have examined Android and taken no action against Google.

Widespread adoption of Android by handset manufacturers has cemented Google's pre-eminent position in online mobile services such as search and maps. More than 1bn Android handsets were shipped last year, or 82 per cent of a worldwide total of 1.3bn smartphones, according to IDC.

The Android platform is open-source software that can be used for free. Rivals complain however that terms of distribution give Google an unfair advantage for in-house services such as YouTube that generate lucrative ad revenues.

Google has two ways of keeping a measure of control over the loose alliance of handset makers who have been drawn to its Android mobile ecosystem, both of which have come in for criticism in the past.

Some companies have complained that, in order to be allowed access to the latest version of the Android operating system, they are forced to give Google services such as search, maps and YouTube a prominent position on their devices.

A second is the "compatibility testing" that Google uses to ensure handsets authorised to use the Android name pass a certain technical threshold to run apps distributed through its Play store.

The requirement is designed to prevent fragmentation of the Android world into incompatible handsets that do not carry common apps, though it has also raised concerns about whether it limits handset makers unfairly.

The launch of a probe indicates that the commission is sufficiently concerned about potential antitrust violations to open a formal procedure. Such cases can be dropped for lack of proof, or closed through a settlement. Ultimately the commission could rule against a breach and impose heavy fines and require changes to business practices.

The Commission and Google declined to comment on the Android case.

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