Google Inc (NASDAQ:GOOG) found itself into a fresh controversy when Fairsearch Europe, a group of Google rivals filed a formal complaint against Google’s Android operating system for smartphones. The group is accusing Google Inc (NASDAQ:GOOG) of using unfair means to get advantages for key Google apps in 70 percent of the smartphones shipped, reports Bloomberg.
The Fairsearch Europe consists of companies like Nokia Corporation (ADR) (NYSE:NOK), Microsoft Corporation (NASDAQ:MSFT) and Oracle Corporation (NASDAQ:ORCL). According to Tomas Vinje, the lead lawyer for Fairsearch Europe, Google Inc (NASDAQ:GOOG) uses Android “as a deceptive way to build advantages for key Google apps in 70 percent of the smartphones shipped today,”
Vinje said that phone makers who use Google’s Android OS along with the popular apps like youtube have to go through contractual prerequisites under which the Google’s application are to be given greater place compared to other companies apps.
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The chief of European Union’s antitrust body Joaquín Almunia did not comment on the development but said that there have been probes conducted on Android Operating System by the officials regarding the accusations that Google Inc (NASDAQ:GOOG) has been taking unfair advantage of its position in Internet search. It is in the hand of the commission to take up or drop any case when the formal complaint is filed.
In Europe, Android smartphones capture 70 percent share of the market whereas Microsoft’s windows powered phone accounts just about 5 percent. The predatory pricing strategy is adopted in order to overpower the rivals in the market by selling the product below cost.
No other phone makers except Google and Microsoft provide license for its mobile operating system. Smart phone players such as Apple Inc. (NASDAQ:AAPL) and Blackberry do not license their Operating System. Further, Nokia has also stopped licensing its Symbian operating system.
Android operating system from Google Inc (NASDAQ:GOOG) is free through which the search engine giant enjoys an edge over Microsoft’s paid for Windows phone mobile software, which is used by companies like HTC and Samsung.
To get a registration with Google, phone makers should agree on including the apps from Google Inc (NASDAQ:GOOG) if they want Android OS, but it is not mandatory and a quarter of total Android phones, which are running on Android OS, are not registered with Google. These unregistered phones are mostly sold in China where Google’s search engine is not given the license by Government.
In an interview with New York Times Almunia said that Google Inc (NASDAQ:GOOG) is expected to come up with some new proposals this week regarding its search practices. The proposal would be submitted to the competitors.