BackCCI slaps ₹1,338 crore fine on Google for anti-competitive practices
The Indian regulator said it has also directed the US tech giant to modify its conduct within a defined timeline
PremiumThe Competition Commission of India (CCI) on Thursday imposed a penalty of ₹1,337.76 crore on Alphabet's Google for anti-competitive practices related to Android mobile devices.
Android is an open-source, mobile operating system installed by Original Equipment Manufacturers (OEMs) of smartphones and tablets.
Besides, the fair trade regulator has directed the internet major to cease and desist from unfair business practices.
In a release, the Indian regulator said it has also directed the US tech giant to modify its conduct within a defined timeline.
The regulator said that mandatory pre-installation of entire Google Mobile Suite (GMS) under Mobile Application Distribution Agreement (MADA), with no option to un-install the same, and their prominent placement amounts to imposition of unfair condition on the device manufacturers and thereby contravenes competition law.
"These obligations are also found to be in the nature of supplementary obligations imposed by Google on OEMs and thus, in contravention of Section 4(2)(d) of the Act," the statement read.
Section 4 of the Competition Act pertains to abuse of dominant position.
Also, the CCI said that the internet major has leveraged its dominant position in the app store market for Android OS to enter as well as protect its position in non-OS specific web browser market through Google Chrome App.
"Google has leveraged its dominant position in the app store market for Android OS to enter as well as protect its position in Online Video Hosting Platforms (OVHPs) market through YouTube and thereby contravened provisions of Section 4(2)(e) of the Act," the statement read.
CCI ordered a detailed probe
Back in April 2019, the CCI had ordered a detailed investigation into the matter following complaints by consumers of Android-based smartphones in the country.
The investigation arm of the CCI had accused Google of adopting anti-competitive, unfair and restrictive trade practices in the mobile operating system and related markets.
A two-year probe ordered by the CCI found that Google India was guilty of stifling competition and innovation in the market to maintain its dominance in search, music, browser, app library and other key services, according to reports.
The investigation has also accused Google of imposing one sided contracts on devices and on app makers to ensure that its own products and applications maintained primacy in consumer usage and came in pre-installed as well as default options for highest user preference.
Meanwhile, Texas has also filed a lawsuit against Google for allegedly collecting biometric data of millions of Texans without obtaining proper consent, the attorney general's office said in a statement today.
Google has faced and is facing such probes worldwide from the US, European Union, Germany and Japan.
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