Hungarian Competition Authority (GVH) started a competition control proceeding against Google LLC (Google) which ended without stating an infringement but Google shall make several commitments. GVH investigated Google’s multiple commercial practices in connection with its ‘Allo’ chat client.
During the procedure which began in 2016, GVH investigated Google’s commercial practices in relation to its ‘Internet and applications’ services, ‘personalisation of advertisements’ and encryption among chat client endpoints as well as its communication practices in relation to data processing of Google account functions of ‘Allo’ chat clients.
Regarding the communication on encryption among chat client termination points, GVH stated the lack of infringement and terminated the procedure in relation to Google’s communications practices pertaining to its ‘Internet and applications’ and ‘personalisation of advertisements’ services. Due to Google’s voluntary commitments, GVH did not state any infringement and did not impose fine because the company ensured the protection of public interest and providing proper information to consumers.
What was Google’s misconduct in question exactly? GVH was not satisfied with the information Google provided to consumers. The authority argued that Google did not provide direct information during the installation and use of ‘Allo’ chat client, which can be used without using any other Google product or a Google account, that would bring the consumers in a position of making a knowledgeable and well-established decision. Due to lack of information, consumers had incomplete information on the nature, use and pricing of the product.
Nevertheless, GVH did not find it necessary to state an infringement, but underlined that the prejudice Google caused is repairable by the commitment decision pack which ensures the protection of public interest – as it is one of the main purposes of competition control procedures. Google promised to create a subpage within ‘Allo’ application with clear and understandable information for consumers, and to make information on webshops easily accessible, right after the introduction.
Google also promised to public an educational banner on YouTube in the last quarter of 2018 with a message that Google collects and controls users’ personal data, suggesting users to revise privacy settings.
Lately, more and more competition control proceedings end with decisions on commitments, especially the ones involving consumer protection issues. This institution ensures the protection of public interest and the education of consumers. It is a win-win situation as the company also benefits at the same time since the authority will not state infringement and impose a fine.