Agenda

GOOGLE HAS RECEIVED ADMINISTRATIVE FİNE FOR FAILURE TO COMPLY WITH OBLIGATIONS IMPOSED BY THE TURKISH COMPETITION AUTHORITY

06/12/2019

The Turkish Competition Authority (“TCA”) has fined Google on the grounds that it has not fulfilled the obligations in order to eliminate the violations determined by the TCA decision 18-33/555-273. (19.09.2018)

The contracts signed by the economic integrity (“Google”) consisting of Google LLC., Google International LLC. and Google Reklamcılık ve  Pazarlama Ltd. Şti. with mobile device manufacturers, was determined by TCA that Google violated The Act on The Protection of Competition (Act no. 4054). Violations were as such:

  1. Assigning Google search as default at certain points,
  2. Positioning the search bar on the home screen,
  3. Assigning the Google Webview component as the stand-alone default component for that function,
  4. Uploading Google Search to devices exclusively,

Accordingly Google was found to abuse its dominant position and fined for  93.083,422.30. TL Additionally, Google was mandated to meet certain conditions in order to end the breach and establish effective competition in the market. These conditions are as follows:

  1. Although it does not constitute a violation of the Mobile Application Distribution Agreements, as a condition of licensing, it is necessary for Google to inform device manufacturers that there is no obstacle to the installation of competing applications alongside Google applications in order to ensure publicity and to address future competitive concerns,
  2. Removal of contract provisions from contracts that regulate or directly/indirectly refer to the requirement that Google search snippet be installed on the home screen in a privileged manner, as a condition of licensing,
  3. Removal of the terms of default assignment of Google search, shown as a licensing condition,
  4. No financial or any kind of incentive to do that would result in prohibited consequences,
  5. Removing clauses from all existing agreements that Google's competitors cannot front-load on devices, and that rival applications cannot be used on Google search on search points located on devices.

The Competition Board concluded that the measures presented in the compliance package and additional articles submitted within 6 months of the notification of the reasoned decision were not sufficient and did not meet the obligations. In order to effectively implement the measures, the contracts signed between Google and each device manufacturer and any changes to them must be submitted, whereas the changes presented in the compliance package provided financial incentives and therefore did not serve the purpose.

As a result, The Competition Board decided to impose an administrative fine of 0.5% of its 2018 turnover to process Google every day until all obligations are fully fulfilled starting from 07.11.2019 due to its failure to make the necessary changes within the recognized period under the Act no. 4054, Article 17.