What EC v. Google means for US government users

What is old is new again. Another tech behemoth is facing significant government antitrust allegations. After a five-year investigation, the European Commission (EC) has issued formal antitrust charges against Google focused on the company’s Internet search dominance. The EC has also launched a formal investigation into Android – Google’s ad-subsidized mobile platform. On April 15, the EC sent a Statement of Objections to Google outlining its view that Google abuses its position by favoring its own products in search. According to the statement, “The Commission’s preliminary view is that such conduct infringes EU antitrust rules because it stifles competition and harms consumers.”

While the Commission’s case is directed at Google’s conduct in the consumer market, it is important to consider the significant implications this has for enterprise users globally in both the public and private sectors. The EC’s decision reinforces the necessity that customers must educate themselves on the data-use terms of their cloud providers and craft their contracts accordingly.

{mosads}Moving forward, the EC’s decision highlights the need for the public sector to carry out their tech purchasing decisions very wisely. Following previous antitrust actions, policy guidance was put in place to assist departments and agencies to make informed purchasing decisions. These policies exist for a reason and should be followed to address any current risk.

Significant Implications for U.S. and Global Users

Let’s take a step back and examine what the EC’s announcement means for government agencies in the U.S. In 2004, the President’s Office of Management and Budget (OMB) issued a policy memorandum outlining the criteria for agencies to use when selecting contract winners. As the memo states,“…[A]gencies must consider the total cost of ownership including lifecycle maintenance costs, the costs associated with risk issues, including security, privacy and use of government and citizen data, and the costs of ensuring security of the IT system itself.” 

In an era of wide-ranging cloud computing business models, there is no room for a lack of clarity in public and private sector contracts. The concept of Total Cost of Ownership (TCO) is a guiding principle that should be employed in more procurement decisions about platforms and software. TCO helps agencies consider all types of direct and indirect costs, including the risks of purchasing and deploying certain technology. All organizations that procure cloud services should insist that their contracts explicitly forbid any exploitation of user data for profiling, ad targeting, market research or other purposes that they have not expressly authorized.  

A Call to Action

It is critical for agencies to consider all of the costs and risks associated with the technology being procured for business needs. In the wake of the European Commission’s announcement, it is time we all consider the broader cloud implications and ensure our tech contractors are meeting the required terms and conditions as it relates to data management, privacy and security. 

Evans is the national director of the U.S. Cyber Challenge, a nationwide talent search and skills development program focused specifically on the cyber workforce. She served as administrator for e-government and IT at the Office of Management and Budget under President George W. Bush.