Voice assistants, Brussels raises the alarm on Google, Apple and Amazon
Preliminary results of the European Commission's competition survey in the Internet of Things sector have been published. All the details.
Brussels warns: Google, Apple and Amazon could harm competition in the smart device sector.
“We need to ensure that the growth of the Internet happens in a competitive way. The first results of some researches show the central role in the voice and operational assistance of certain gatekeepers, such as Google, Apple and Amazon, which direct behaviors that negatively affect competition ”. The EU Commissioner for competition Margrethe Vestager said today at the press conference in which she announced the publication of a report on the subject by the Commission.
On Wednesday, the European Commission published the preliminary results of the survey on the competition sector on the markets for products and services related to the Internet of Things of consumers in the European Union.
“When we started the industry investigation, we were concerned that there might be a risk that 'gatekeepers' would emerge, that they could use their power to harm competition to the detriment of business and consumer development. From the first results published today, it appears that many in the industry share our concerns, ”added Vestager.
For Brussels “fair competition is necessary to make the most of the great potential of the Internet of Things for consumers in their daily lives. This analysis will feed our future implementation and legislation ”.
The preliminary report on the results of the sector inquiry will now be subject to public consultation for a period of twelve weeks, until 1 September 2020. The Commission intends to publish the final report in the first half of 2022. The information gathered in the context of the sector inquiry will also contribute to the ongoing legislative debate on the Commission's proposal for the Digital Markets Act .
All the details on the results of the EU Antitrust investigation.
THE INVESTIGATION STARTED IN 2020
The sector inquiry was launched on 16 July 2020 as part of the Commission's digital strategy and following an announcement in the Commission's communication on Shaping Europe's digital future.
MORE THAN 200 COMPANIES INVOLVED
During the investigation, the Commission gathered information from over 200 companies of different sizes, operating in consumer product and service markets and based in Europe, Asia and the United States.
THE INTERNET OF THINGS SECTOR
The results of the preliminary report on the sector survey concern the characteristics of consumer products and services; the characteristics of competition in these markets; the main areas of potential concern raised by respondents in relation to the current functioning of the markets as well as their future prospects.
Although the Internet of Things is a relatively new area, it is growing rapidly and becoming more and more a part of our daily life. Last year, more than half of Europeans watched TV shows on smart TVs and are expected to double by 2025 to reach 40 billion euros.
Additionally, there is a trend towards greater availability and proliferation of voice assistants as user interfaces that enable interaction with different smart devices and consumer services. Most of the respondents, explains Brussels, point to the cost of technological investments and the competitive situation as the main barriers to entry or expansion in the sector. According to the answers of the interviewees, the costs of technological investment are particularly high in the market for voice assistants.
DIFFICULT TO COMPETE WITH GOOGLE, AMAZON AND APPLE
Regarding the competitive situation, a large number of respondents reported difficulties in competing with vertically integrated companies that have built their ecosystems inside and outside the industry (e.g. Google, Amazon or Apple).
"As these actors provide the most common operating systems for smart and mobile devices, as well as leading voice assistants, they determine the processes for integrating smart devices and services into an 'Internet of Things' system for consumers."
LIMITED COMPETITION FOR VOICE ASSISTANTS
Furthermore, concerns were expressed about certain exclusivity practices and constraints in relation to voice assistants, as well as practices that limit the ability to use different voice assistants on the same smart device. Potential problems can arise regarding the position of voice assistants and smart device operating systems as intermediaries between users, on the one hand, and smart devices or consumer services, on the other. This position, combined with their key role in data generation and collection, would allow them to control relationships with users.
THE USE OF THE VOICE ASSISTANT WILL DOUBLE IN THE NEXT YEARS
The Commission also found that the use of voice assistant technology is growing worldwide and is expected to double between 2020 and 2024 (from 4.2 billion voice AI to 8.4 billion). Although only 11% of EU citizens surveyed last year had already used a voice assistant, according to Eurostat data.
And those US giants aforementioned continue to dominate the voice assistant market now (Amazon with Alexa, Google with Google Assistant, and Apple with Siri).
THE QUESTION OF DATA
Another concern relates to (unequal) access to data.
In fact, the report notes that the providers of operating systems for smart devices and voice assistants seem to have extensive access to data, including information on user interactions with third-party smart devices and services for consumers. Many believe that this access and accumulation of large amounts of data would not only offer voice assistant providers advantages in relation to the improvement and market position of their generic voice assistants, but would also allow them to leverage more easily in neighboring markets.
THE LACK OF COMMON STANDARDS
Finally, the prevalence of proprietary technology, which sometimes leads to the creation of 'de facto standards', coupled with technological fragmentation and a lack of common standards, raise concerns about the lack of interoperability. In particular, it is noted that some voice assistant and operating system vendors unilaterally control interoperability and integration processes and are able to limit the functionality of third-party smart devices and consumer services.
"If some of these practices are confirmed, competition infringement procedures will be opened," Commissioner Vestager announced.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/assistenti-vocali-bruxelles-lancia-lallarme-su-google-apple-e-amazon/ on Wed, 09 Jun 2021 14:17:02 +0000.