Once ‘forced to death’ opponents with soft power, Google is about to receive ‘retribution’ in Europe

Tram Ho

As Google has expanded its dominance as a search engine over the past two decades, the Czech Republic has emerged as a very different place.

People in this European country love Seznam, a search engine that was born in Prague in 1996, two years before Google. Over the next 15 or so years, Seznam’s focus on the local market provided an interesting story of a land unchallenged by a growing global giant.

But as smartphones became ubiquitous, with most of them having Google installed as the default search engine, Seznam’s luck ran out. Google today controls more than 80% of the search market in the Czech Republic and Seznam has become a search engine more focused on media content.

Từng 'ép chết' đối thủ bằng quyền lực mềm, Google sắp phải nhận 'quả báo' ở châu Âu - Ảnh 1.
Seznam was once a force against Google in Europe.

But since its demise, Seznam has remained a thorn in the side for Google, notably when it joined a complaint against the US search giant that resulted in a record fine. Now, the company is also helping to inspire laws that limit the power of companies like Google, and the consequences for Google are sure to extend far beyond the Czech Republic.

European lawmakers are finalizing a law aimed at protecting businesses like Seznam, by preventing big tech companies from unfairly providing services to eliminate competitors. player. The law would require Google and other tech giants to make services from smaller companies easier for users.

The new rules, expected to be passed in June of this year, will affect how Apple and Google operate app stores, or Amazon sells products online, or Meta and Google sell online ads. . The European debate is being closely watched in other countries, including the United States, where the Justice Department and the Federal Trade Commission have also proposed updating competition rules targeting companies. Biggest technology in the world.

This new wave of regulation is a sign of worldwide concern that some companies have grown so large that new competitors cannot emerge, making these platforms potentially powerful. greater impact on business and society. The Internet, once seen as a way to create a decentralized playing field for a series of businesses to reach users around the world, is now controlled by a large number of companies, and is shrinking. . Policymakers fear there will be less room for small companies to thrive.

“We are an example of consequences,” said Michal Feix, a former Seznam executive who now leads Seznam’s legal and policy work as an outside consultant. Without the new law, you simply cannot compete.”

Meanwhile, Google says its success in the Czech Republic is the result of building a premium service. Czechs “choose our products because they help people find the information they’re looking for – and because we make thousands of improvements every year,” Google said in a statement.

Từng 'ép chết' đối thủ bằng quyền lực mềm, Google sắp phải nhận 'quả báo' ở châu Âu - Ảnh 2.
Mr. Michal Feix is ​​leading Seznam’s legal efforts against Google

Going back in history, in the Czech Republic, Seznam’s history dates back to early enthusiasms for the Internet. Ivo Lukacovic, founder and owner of Seznam, had an impoverished childhood, in a family without a car or color TV. At the age of 22, he dropped out of the Czech Technical University in Prague after creating Seznam, whose name means “list” in Czech. It started as a website that introduced about 10 Czech websites for people to visit. A search engine was added in 1998, and e-mail, maps and other services appeared in the following years.

The company continued to grow after Google’s arrival in the country in 2006. Seznam’s search engine is tailored specifically for Czech speakers and adds services such as unlimited e-mail storage. to keep up with Google services.

In 2008, the Czech Republic, with a population of 10.5 million, became the only place in the 31-country “European Economic Area” where Google was not the leading search engine.

By 2010, Seznam’s position began to change. Google has invested significantly in improving its non-English services and tries to make Czech people sympathetic through its “pleasing” efforts. For example, the digitization of old books is kept at the 18th-century Baroque library in Prague’s old town.

But Seznam sensed something more dangerous was approaching.

Google owns Android, the operating system used on most smartphones in the world. And it already has a deal with Apple to make its search engine the default choice on iPhones. As Internet browsing habits shifted from personal computers to smartphones, Seznam was at a disadvantage.

Google offers free Android operating system to phone makers like Samsung and LG, but it requires these companies to pre-install apps like Google Search and the Chrome browser if they want to access the store. Google Play app store.

Seznam approached handset makers to bring their search services to phones, but all told Seznam that Google had pre-arrangements, Feix said. He added that the time when Seznam usage drops the most is every Christmas, when people open gift packages inside containing new smartphones with Google apps pre-installed.

Từng 'ép chết' đối thủ bằng quyền lực mềm, Google sắp phải nhận 'quả báo' ở châu Âu - Ảnh 3.
Europe will become the first region in the world to set limits on Big Tech companies like Google.

In 2012, Seznam visited the Czech regulatory authorities. And a year later, it joined other companies in filing a complaint with European Commission investigators accusing Google of violating antitrust laws by using Android to block competition.

The attempt was successful, resulting in a record fine of €4.34 billion (about $5 at the time), against Google. The commission said Google used Android to “consolidate its search engine dominance” . Seznam was named or cited at least 24 times in the decision, which is still being appealed by Google.

But for Seznam, the 2018 decision is too late. According to Toplist, a market research firm, the company gave up its leading position in the Czech search market around the summer of 2014. It now accounts for only about 11% of the market. Other research firms say Seznam may have lost its lead as early as 2011, around the same time smartphone usage exploded.

Last year, Seznam sued Google for about $400 million for lost revenue that it alleges was related to Google’s violations of antitrust laws. Google is fighting the lawsuit.

The new anti-competitive law, the Digital Markets Act, will speed up investigations into technology-related competition and require tech companies that grow to a certain size to grant users use access to competitor services. Penalties can amount to 10% of a company’s global revenue, which is worth around $18 billion for Google. On new Android smartphones, users can choose an alternative search engine or browser to use, a remedy that was also included in the 2018 penalty against Google in the Android case.

“Europe will be the first to set these rules,” said Margrethe Vestager, European Commission Executive Vice President for Competition and Digital Policy . will be inspired to be able to create a global movement.”

Refer to StraitsTime

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Source : Genk