The European Union Court ruled that Alphabet Inc. Class C (GOOGL.US) refusing third-party access to Android Auto violates competition laws.

The European Union's highest court recently ruled in support of the decision of Italy's antitrust authority, determining that Alphabet Inc. Class C (GOOGL.US)'s refusal to allow the application developed by Enel X company to access its Android Auto platform may constitute an abuse of market dominance. In a press release on Tuesday, the EU court stated, "The Court considers that a dominant company, after developing a digital platform, refusing to ensure that the platform is interoperable with applications developed by third-party companies, may constitute an abuse of its dominant position." However, the court also pointed out that if the relevant application categories lack appropriate templates and interoperability may endanger the security or integrity of the platform, such refusal behavior is legitimate. The court added that if such circumstances do not exist, a dominant company must develop appropriate templates within a reasonable period. Reports indicate that Alphabet Inc. Class C has now resolved this issue. In September 2018, Enel X requested Alphabet Inc. Class C to allow its electric vehicle charging station locator and booking application JuicePass to access the Android Auto platform (a platform that allows users to access specific applications on their smartphones via the car's integrated display screen). However, Alphabet Inc. Class C refused, citing a lack of specific templates and stating that at the time, only media and communication-related third-party applications were compatible with Android Auto. Alphabet Inc. Class C also defended its decision on the grounds of safety concerns and the resources required to develop new templates. As a result, the Italian Competition and Market Authority (AGCM) imposed a fine of over 1.02 billion euros on Alphabet Inc. Class C, deeming this behavior as an abuse of market dominance. According to the EU court, Alphabet Inc. Class C appealed to the Italian Council of State, which then referred the case to the EU court for a preliminary ruling. In September last year, EU Advocate General Laila Medina supported the position of the Italian antitrust authority, stating that Alphabet Inc. Class C's refusal to allow the application to access the Android Auto platform may violate EU competition rules.