An Ignoble Experiment

eBook: TV Everywhere Gets Personal

FairSearch, a coalition of 17 technology and search firms including Microsoft (NASDAQ:MSFT), Nokia (NYSE:NOK), Oracle, Expedia and Hotwire, has filed a formal complaint with European antitrust regulators alleging that Google (NASDAQ:GOOG) is exploiting its open-source Android mobile operating system to "cement its control over consumer Internet data for online advertising as usage shifts to mobile."

Google is using Android as a low-cost "'Trojan Horse' to deceive partners, monopolize the mobile marketplace and control consumer data," said Thomas Vinje, an attorney representing the FairSearch group, citing contractual agreements requiring Android device manufacturers to pre-install Google apps and services and award them prominent default placement. The complaint calls on EU officials to probe Google's "deceptive conduct to lockout competition" in the mobile market, adding "Failure to act will only embolden Google to repeat its desktop abuses of dominance as consumers increasingly turn to a mobile platform dominated by Google's Android."

According to FairSearch, Android powered 70 percent of smartphones shipped at the end of 2012. The group adds that Google controls 96 percent of the mobile search advertising market, citing eMarketer data.

Speaking Monday to The New York Times, EU antitrust chief Joaquín Almunia declined to comment on the FairSearch complaint but said officials are examining Android independently of its two-year inquiry into whether Google has abused its Internet search power. Almunia added that he expects to receive proposals from Google this week to clear up concerns over its search practices, expressing hope that the proposals will make it easier for consumers to identify when Google is promoting its own services as opposed to competing efforts that might deliver superior results.

"What is clear in our view is the market dominance of Google," Almunia said. "This is obvious."

Almunia added that Google must offer EU officials a solution that makes both Google-branded search results and competitor results visible within the search engine on both mobile devices and the desktop. "I don't know if you should call it labeling, or whatever, but they need to distinguish," Almunia explained. "In some cases this can be achieved through the information you will receive through the natural search results. In other cases, maybe we will ask Google to signal what are the relevant options, alternative options, in the way they present the results."

Almunia also said that "it would not be surprising" if Google faced formal charges in a case concerning its Motorola Mobility device manufacturing unit. Both Microsoft and Apple (NASDAQ:AAPL) have filed complaints against Motorola Mobility, alleging unfair licensing conditions and abusive litigation.

Contacted by The New York Times, Google spokesperson Al Verney declined to specifically address either the FairSearch complaint or Almunia's comments, saying only that the company continued "to work cooperatively" with the EU commission.

Google has already cleared one antitrust hurdle: In January, the Federal Trade Commission closed a 19-month inquiry into Google's search business and determined the company had not violated competitive restrictions in the U.S. market.

For more:
- read this New York Times article
- read this Washington Post article

Read more about: Mobile Search, European Union
back to top

This week's sponsors are : Ooyala, Verimatrix, Irdeto and IneoQuest.

FierceCable discusses the latest technologies TV networks and content owners use to drive increased ratings and revenue from various video devices. Download for free today.

2. WhatsApp smacks down Google acquisition rumors

By Jason Ankeny

Comment |

3. Google removes 60K apps ahead of Google Play refresh

WhatsApp has refuted reports it is in talks to sell its over-the-top messaging platform to Google (NASDAQ:GOOG).

Late last week, Digital Trends reported Google and WhatsApp first entered negotiations roughly a month ago, with insiders stating that WhatsApp was "playing hardball" and seeking a purchase price in the neighborhood of $1 billion. Former Google executive Neeraj Arora, who joined WhatsApp in late 2011 and now holds the title Business Guy, told AllThingsD that the startup is not holding sales discussions with Google but declined to comment further.

Late last year, WhatsApp also denied reports it had entered talks to sell its platform to Facebook (NASDAQ:FB). AllThingsD maintains that both Google and Facebook have explored buying WhatsApp in the past.

The WhatsApp Messenger application enables users to share text messages, voice notes and photos with contacts across the globe, without international messaging fees. WhatsApp users across all mobile platforms now transmit roughly 17 billion messages daily (7 billion inbound and 10 billion outbound), with more than 100 million users on Google's Android OS alone.

WhatsApp has chosen to avoid advertising support, billing Android, BlackBerry (NASDAQ:BBRY) and Windows Phone users $0.99 per year after a one-year free trial period. The firm has traditionally offered its iPhone app for a one-time download fee of $0.99, but CEO Jan Koum said last month that WhatsApp will shift its iOS business to the recurring subscription model later this year, adding the pricing change will apply solely to new iOS users.

Acquiring WhatsApp would have helped Google to unify its disparate messaging services under one umbrella. Last month, Geek.com reported Google is readying Babble (or possibly "Babel"), a cross-platform application that combines messaging and chat options including Google Talk, Google+ Messenger, Hangout and Drive Chat into a single service. Insiders say Babble will integrate signature features of each service, enabling users to share photos in chat windows à la Google+ Messenger or start Hangout conversations with anyone in their contacts list.

Insiders say Google is building Babble from the ground up and will offer native apps for its Android mobile operating system and its Chrome desktop OS. Additional reports indicate Google will also offer Babble across iOS and BlackBerry, where it will challenge Apple's (NASDAQ:AAPL) iMessage (which transmits more than 2 billion messages per day between iOS devices) and BlackBerry Messenger (used by three out of every four BlackBerry device owners, corresponding to roughly 60 million active users worldwide) as well as conventional operator messaging offerings and OTT options like WhatsApp, Facebook (NASDAQ:FB) Messenger and Viber.

For more:
- read this AllThingsD article

Read more about: Google
back to top

By Jason Ankeny

Comment |

4. Starbucks' 'Pick of the Week' goes mobile with 'Angry Birds Star Wars' giveaway

Google (NASDAQ:GOOG) Play app deletions reached a record-high of 60,000 in February, indicating Google is escalating efforts to clean up the storefront in tandem with a redesigned shopping experience on Android devices.

TechCrunch, which learned of the Play inventory deletions from "a company in the mobile app industry, which has insight into changes like this," reports that many of the Android apps ousted in February fall into the MP3/ringtone category, a segment notorious for copyright violations and quality control issues. However, a number of other deletions were spam apps in violation of Google Play's Terms of Services. These deletions include apps that carry product descriptions that are "misleading or loaded with keywords in an attempt to manipulate ranking or relevancy in the store's search results," apps "created by an automated tool or wizard service" and apps that "post repetitive content."

Not all of the apps were removed by Google; some, like the now-defunct Color video sharing app, were most likely deleted by the publishers themselves.

Google Play does not scan Android apps until they have gone live. Google declined to comment on the cleanup effort, but TechCrunch notes the company has been steadily improving its automated scanning controls to more accurately identify apps in violation of its rules.

On Tuesday, Google announced a new-look Play emphasizing larger images and groupings of similarly-themed content designed to make it easier for users to find the apps and entertainment they're looking for. "As you move down the page, new recommendations continue to appear so there is always more to see and explore," states Google Play Group Product Manager Michael Siliski. "We've also simplified purchasing so you can breeze through checkout and get to enjoying your movie rental or other content."

The redesigned Google Play store app is rolling out now for Android phones and tablets running Android 2.2 (Froyo) and above. Rumors of the revamp first began circulating last month after Droid Life posted leaked screenshots of the new UI.

Google Play (formerly Android Market) launched in October 2008 and now boasts more than 700,000 Android apps, keeping pace with archrival Apple's (NASDAQ:AAPL) App Store. The storefront received its last significant overhaul two years ago.

For more:
- read this TechCrunch article
- read this Android Official Blog post

Read more about: Google, Android
back to top

By Jason Ankeny

Comment |

5. Canalys: App store downloads surge 11% in Q1, revenues reach $2.2B

Starbucks is overhauling its long-running Pick of the Week digital content promotion and will now offer consumers free mobile applications and e-books directly through its branded app for Apple's (NASDAQ:AAPL) iOS.

Starbucks's revamped Pick of the Week features Angry Birds Star Wars for free.

CNet reports Starbucks will now enable customers who've installed the coffeehouse chain's app on their iPhone or iPad to download curated Pick of the Week selections via Starbucks' in-store Wi-Fi network. The company previously offered Pick of the Week promotions using printed cards including download redemption codes.

Starbucks first launched Pick of the Week in 2008 and began offering free content from Apple's App Store and iBookstore three years later. In late 2012, the chain expanded the program to offer free iTunes music downloads through the Starbucks iOS app. "This expansion, of adding apps and books, is the reflection of Starbucks and Apple working together to strengthen the relationship for customers," Starbucks Chief Digital Officer Adam Brotman said. "This is another step in the direction that we're going to integrate more things into our mobile application."

Starbucks is kicking off the revamped Pick of the Week by offering customers Rovio Entertainment's hit Angry Birds Star Wars for free. The game is priced at 99 cents when downloaded from the App Store.

According to Brotman, more than 10 million active users across iOS and Android access the Starbucks app, and downloads top 100,000 each week. It is unclear when or even if Starbucks will expand Pick of the Week to the Android platform, however--the program has always been limited to iOS-optimized apps and media.

In addition to offering free content, the Starbucks app enables users to pay for their order by holding their smartphone in front of a countertop scanner and processing the app's on-screen barcode. Starbucks processes more than 3 million mobile payment transactions per week.

For more:
- read this CNet article

Read more about: Apple, Rovio Entertainment
back to top

By Jason Ankeny

Comment |