Europe’s highest court has provided clarity on the rules surrounding interoperability requirements for major tech companies, delivering a verdict on a case involving Google’s Android Auto platform. In 2021, Google faced a hefty €100 million antitrust fine from Italy’s competition authority. The charge was for its refusal to allow a third-party electric car charging app, developed by energy company Enel X Italia, to connect with the Android Auto, which is a version of Google’s mobile operating system optimized for in-car use.
Google’s defense cited safety concerns, arguing that restrictions were necessary to prevent driver distractions. This defense came despite the fact that thousands of other apps had already gained interoperability with Android Auto. The Italian authority, however, saw Google’s action as an abuse of its dominant market position, effectively stifling Enel’s competitiveness and consumer appeal. This week, the European Court of Justice (CJEU) sided with the Italian authority, establishing that denying interoperability in such dominant market contexts can indeed constitute an antitrust violation.
Although the specific Enel versus Android Auto issue had been resolved after Google later created a framework for electric car charging apps, the CJEU decision sets broader standards. Tech leaders must adhere to these when handling interoperability requests, a decision that could significantly impact app developers looking to integrate with major platforms.
However, the ruling allows for justifiable refusals of interoperability, provided that there is no existing template for the requested app category, or if granting integration would risk the platform’s security and integrity. Additionally, a technically unfeasible request is a valid reason for refusal.
If no valid exceptions apply, the ruling mandates that the platform must grant interoperability within a “reasonable and necessary” timeframe. In certain cases, it may also entail appropriate financial compensation. The court highlighted that any compensation must consider the needs of the third-party developer, the actual development costs, and the dominant enterprise’s right to a fair benefit.
Responding to the verdict, a Google spokesperson expressed disappointment. They highlighted their focus on developing features most needed by drivers, such as media and messaging apps, and pointed out that the requested feature was relevant to only a minuscule fraction of cars in Italy at the time of the original request. Google aims to prioritize features driven by user demand rather than specific company requests.
This CJEU judgment underscores that, regardless of the European Union’s Digital Markets Act (DMA) regulations, which impose interoperability obligations on designated gatekeepers, such rules could still extend to other significant business ventures for market-leading companies across the EU, even if not regulated under the DMA.
