Three years after receiving a record fine from the European Commission alongside an order to stop abusing its control of the Android operating system, Google is set to have its day in court.
Back in 2018 the company was fined €4.34bn (£3.8bn) for forcing phone makers to pre-install apps including Google Search and Chrome to the exclusion of other search engines and web browsers.
The fine was a fraction of the €116bn (£99bn) parent company Alphabet recorded in revenues that year, but the real cost to the company was the threat to its future income if smartphones landed in consumers’ hands without Google apps already installed.
Google’s five-day appeal against the decision is being heard at European Court of Justice in Luxembourg, where the company hopes to have the Commission’s decision annulled in its entirety.
A failure to do so could completely reshape the smartphone landscape, but other challenges targeting Google inside the US pose a far more significant risk to the company and could lead to the search giant being broken up into several smaller businesses.
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Breaking up monopolies
While there are an over-abundance of comparisons between the oil industry of the late 19th century and the tech industry of today, the slow movement of regulators is one of the most striking similarities.
It was in 1890 that US Congress passed a law to tackle the monopolies which had sprung up over the preceding half century, but it took more than three decades for that law to be used to break up Standard Oil, a company which by 1904 controlled more than 90% of oil production in America.
Standard Oil’s business excelled due to its innovations in refining oil, but also because the company had rapaciously acquired rivals and used its commercial heft to strike deals with railroad companies (themselves a target for early antitrust action) at discounted rates which the remaining oil businesses could not compete with.
In a landmark ruling in 1911, the US Supreme Court upheld that Standard Oil was an illegal monopoly and ordered it to be broken up into 34 independent companies. Though that power is not available to the European Commission, there is a growing movement in the US calling for similar actions to be taken against tech giants whom some believe are guilty of the same anticompetitive practices.
Modern antitrust law
Google is a very different company to Standard Oil, but the alleged unfairness of its practices – using its control of Android to force phone manufacturers who want to include the Google Play app store on their phones to also pre-install Google Search and Chrome – follows the same model of undermining rivals.
The investigation into Google coercing phone manufacturers formally began in 2015, although the Commission made its first enquiries about the company’s practices in 2013 when an association of Google’s rivals calling itself FairSearch lodged a complaint against its business practices.
The ruling came three years later in 2018 and now, three years later, Google’s appeal has reached the European Court of Justice. Thomas Vinje, counsel to FairSearch and partner at law firm Clifford Chance, told Sky News he expected there could be another appeal after the hearing in Luxembourg.
“Antitrust enforcement is not, on its own at least, sufficiently robust, sufficiently effective, to be able to address these really extraordinary concerns. I’m not sure the world has ever faced a situation where there is such a concentration of power in such a central element of today’s economy, and antitrust law is not up to the task,” he said.
“That is largely because they’re complex cases,” Mr Vinje explained.
“They’re more complex than rail roads or oil distribution – I’m not saying those are simple – but the issues faced in Big Tech today are a hell of a lot more complicated. So there is a hell of a lot more room for obfuscation… and dragging things out.
“So by virtue of the completely appropriate rights that defendants have in these cases, the cases just take too long.”
What is Google’s response and appeal?
Google, which claims the most popular search term on rival search engines such as Bing is the word “Google” itself and which controls more than 90% of the market for web searches, disputes the Commission’s arguments about its dominance, although that won’t feature prominently in its arguments next week.
In a news briefing ahead of the hearing, the company explained to journalists that it believes a lot has changed in the years since the Commission issued its decision.
Key to Google’s appeal is the argument that its control ensures Android is a platform which can run across millions of smart devices made by different manufacturers, increasing the economic benefits for developers – including rival web browser makers such as Opera, which is supporting Google’s appeal – and ultimately consumers.
Google will note that a revenue sharing agreement it had with phone manufacturers and mobile network operators, cited as an illegal contractual restriction by the Commission, ended in 2014.
The company also strongly disputes the way that the Commission calculated the €4.34bn (£3.8bn) fine, something the Commission said was “calculated on the basis of the value of Google’s revenue from search advertising services on Android devices” inside the European Economic Area.
What is the threat in the US?
Even if Google succeeds in getting the Commission’s decision annulled or amended, it faces three more challenges in the US which are backed by severe powers to tackle monopolies.
The first complaint was filed last October in a case led by the Trump administration’s Department of Justice and joined by 11 states – though with apparent bipartisan support – charging Alphabet with “unlawfully maintaining monopolies in the markets for general search services”.
Two more cases were brought against Google in December.
One from the attorneys general of 35 states accuses the company of anticompetitive practices in order to retain its dominance in search, while another filed by the attorneys general from 10 states focuses on the company’s monopoly power in digital advertising markets.
Google has denied engaging in anticompetitive practices.
Up to 4,000 people voting overseas in the US election are having their ballots challenged in Pennsylvania, a key battleground state, according to the American Civil Liberties Union (ACLU).
They include Selma Aldi, 47, from Camden in north London who received a letter on Sunday explaining that her ballot in the US presidential election is at risk of being rejected.
“It was a shock,” she said. “It was terrifying to be targeted, to potentially lose a right that I hold as very important. It’s even a feeling that someone is questioning my identity.”
The trainee GP, who grew up in Hershey, Pennsylvania left America in 2000 but has voted via absentee ballot in every US presidential election since.
A letter from election officials in Dauphin County outlines the legal challenge. It reads: “The applicant is not registered to vote and therefore is not eligible to vote in Pennsylvania.
“Under Pennsylvania law, it is a felony to permit any person to vote who is not registered.”
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A hearing on the legal challenge is scheduled for Friday, in which Ms Aldi can respond.
Around 2.8 million US citizens living abroad are entitled to vote in the election, no matter where they are on polling day.
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But each state has different procedures and rules on how election paperwork can be sent and received.
But Ari Savitzky, senior staff Attorney at the ACLU said “any attempt to challenge [voters] eligibility is a clear violation of their rights”.
He told Sky News: “Between 3,000 and 4,000 challenges have been filed in Pennsylvania to the absentee ballots of US citizens living abroad.
“For decades, federal law has guaranteed the right of US citizens living abroad to vote in federal elections at their last US residence.
“In addition to being legally baseless, these challenges are an abuse to voters and to election administrators.”
Deborah Hinchey from another voting rights group, All Voting is Local, said: “Election deniers across Pennsylvania have submitted thousands of mass challenges to overseas voters.
“They want to block as many ballots as possible and silence our voices… but these baseless challenges have failed before and the proper checks and balances are in place to make sure they’ll fail again,” she added.
Tonight, Sky News will have access to the most comprehensive exit poll and vote-counting results from every state, county and demographic across America through its US-partner network NBC.
You can find out more about Sky News’ coverage here.
Elon Musk can keep giving away $1m to voters in battleground states, a judge has ruled – as a lawyer admitted the winners aren’t chosen randomly.
Musk – a supporter of Republican candidate Donald Trump – launched the giveaways last month via America PAC, his political action committee (PAC).
He has already handed out $16m in the scheme, which is open to registered voters in seven key battleground states – Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania and Wisconsin – who sign a petition pledging to support free speech and gun rights.
On Monday, Pennsylvania Judge Angelo Foglietta ruled the giveaways could carry on, rejecting a district attorney’s request that he shut it down because it allegedly violated state election law.
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Elon Musk hands out $1m cheques
Philadelphia District Attorney Larry Krasner, a Democrat, said it was “a political marketing masquerading as a lottery”, adding “That’s what it is. A grift.”
Judge Foglietta did not explain his ruling on the matter but Chris Gober, a lawyer for America PAC, had argued the winners are not chosen by chance and are instead hand-picked based on who would be the best spokespeople for the group – despite Musk’s assertion that they would be chosen randomly.
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Mr Gober said the final two winners before Tuesday’s presidential election will be in Arizona on Monday and Michigan on Tuesday.
He said the recipients “are not chosen by chance”, adding: “We know exactly who will be announced as the recipient today and tomorrow.”
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Musk: Mark Stone’s deep dive
America PAC director Chris Young said recipients are vetted ahead of time to “feel out their personality, (and) make sure they were someone whose values aligned” with the group.
In closing arguments, Musk’s legal team said it was “core political speech” as anyone taking part had to sign a petition endorsing the US Constitution.
Given there will be no more Pennsylvania winners before the programme ends, Musk’s lawyers said any legal bid to stop it under Pennsylvania law was irrelevant.
Launching the plan in the state on 19 October, Musk said they would be “awarding a million dollars randomly to people who have signed the petition every day from now until the election.”
Donald Trump says he would end Russia’s war in Ukraine should he return to the White House – but any rushed deal will likely leave Kyiv much weaker and European security in even greater peril.
Another major flashpoint a Trump presidency would immediately seek to influence is the escalating conflict between Iran and Israel.
Mr Trump came close to direct war with Tehran during his first term in office and prior restraint could well give way to direct confrontation this time around.
Then there is the overwhelming longer-term challenge posed by China, with North Korea another growing headache especially after Mr Trump tried but failed to woo the leader of the hermit state during his first stint as commander-in-chief.
With the US election on a knife edge, hostile and friendly capitals around the world have been gaming what a second Trump White House might mean for their respective national interests and for the most pressing global security threats.
Mr Trump’s track record of unpredictability is a challenge for traditional foes – but also for Washington’s closest allies, in particular fellow members of the NATO alliance.
The Republican nominee has made no secret of his frustration at how the US has for decades bankrolled the security blanket that protects Europe.
During his first term as president, Mr Trump threatened to withdraw the US from the alliance – a move that would almost certainly sound its death knell. His rhetoric did help to spur allies to dig deeper into their pockets and spend more on their militaries, though.
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But the damage of years of underinvestment is deep and the pace of recovery is too slow for European NATO allies and Canada to credibly stand on their own as a potent military force any time soon.
In terms of immediacy when it comes to global crises, the impact of a Trump victory on 5 November would be felt most acutely by Ukraine and also by Iran.
The presidential candidate has repeatedly claimed that he would quickly end the Ukraine war, though without explaining how or what peace would look like.
In an indication of where his priorities lie, however, he has accused Ukrainian President Volodymyr Zelenskyy of being the “greatest salesman on earth” for securing tens of billions of dollars in weapons and other assistance that Washington has given to Kyiv.
Yet – coupled with Ukraine’s willingness to fight – that military aid is the biggest reason why Ukraine has managed to withstand almost 1,000 days of Vladimir Putin’swar.
Stop the flow of American weapons, and Ukrainian troops – despite their own ingenuity and the support of other allies – will simply lack the firepower to keep resisting the onslaught.
By contrast, US vice president Kamala Harris, who is vying for the top job, has made clear that she views continued support to Ukraine as being as vital to US and Western interests as it is to Kyiv’s – a far more familiar stance that echoes the view of her NATO partners.
While US support for Ukraine would undoubtedly change under a Trump administration, that is not the same as facilitating a complete surrender.
The former president – who portrays himself as the ultimate dealmaker and has adopted a new election slogan – “Trump will fix it” – will not want to be held responsible for the total absorption of Ukraine into Mr Putin’s orbit.
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How does the US election work?
Putin and Iran
His relationship with the Russian president is a particularly interesting dynamic.
But with the right advice, might a future President Trump be able to use his connection with Mr Putin to the West’s advantage?
At the very least, it adds a new level of unpredictability – which is perhaps the most important element when it comes to assessing the potential impact on the world of a second Trump term.
On Iran, in stark contrast to his approach to Russia’s war in Ukraine, a future President Trump may well back much greater US military support for Israel’s conflict against Tehran and its proxies – perhaps even direct involvement by US forces in strikes on Iran.
Mr Trump has an even tougher stance towards Tehran and its nuclear ambitions than Joe Biden’s administration.
His decision to rip up a major nuclear deal with Iran was one of his most significant foreign policy acts during his four years as president.
It is also personal, with Iran accused of hacking the Trump campaign in recent months – an attack that would surely only heighten tensions with Iran during any second Trump term.
On election night, Sky News will have access to the most comprehensive exit poll and vote-counting results from every state, county and demographic across America through its US-partner network NBC.
You can find out more about Sky News’ coverage here.