PremiumThe Competition Commission of India (CCI) has said that it has approved Google picking up 7.73% stake in Mueskh Ambani-led Jio Platforms for ₹33,737 crore, facilitating the internet major and Jio Platforms Ltd (JPL) to develop and launch Android smartphones in India.
Internet giant Google will be making the investment into the digital arm of Reliance Industries through its wholly-owned subsidiary Google International LLC (GIL).
Taking to Twitter, the watchdog wrote, "Commission approves acquisition of 7.73% equity share capital of Jio Platforms by Google."
The development comes at a time when there is intense scrutiny over the impact of global companies, including the US-based firm, on smaller firms.
The US Department of Justice earlier stated that its investigators found that Google acted unlawfully to maintain its dominant position in search and advertising on the internet.
Earlier this year, it was said that Google has agreed to invest ₹33,737 crore to buy a 7.7% stake in the Reliance Industries' technology venture.
As per the combination notice filed with the regulator, the proposed transaction enables Google and JPL to develop and launch a new smartphone in India.
"The parties, thus, consider that the only relevant market for assessing the horizontal competitive effects of the transaction is the market for the supply of mobile phones in India. Outside this transaction, Google and JPL will continue to conduct their business activities independently," according to the notice.
Reliance Industries Chairman Mukesh Ambani, in July, said Google has agreed to invest in JPL and to cooperate on technology initiatives, including development of affordable smartphones.
14th investor to invest in Jio Platforms
After Facebook, Silver Lake Partners (two investments), Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton, PIF, Intel Capital and Qualcomm Ventures, Google became the 14th investor to invest in Jio Platforms.
Google's arch rival Facebook's deal with Jio was announced earlier in April and the watchdog's nod came in June. The CCI has approved Facebook's acquisition of 9.99% in Jio Platforms for ₹43,574 crore, a move which would strengthen social media giant's presence in its largest market.
Jio Platforms has raised more than ₹1.52 lakh crore fund by divesting minority stakes to multiple technology firms that includes tech giants, private equity players and sovereign wealth funds.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!
