Google fined Rs 1,338 crore for unfair trade practices in India

New Delhi: The Competition Commission of India (CCI) has imposed a penalty of Rs 1,337.76 crore on tech giant Google for abusing its dominant position in multiple markets in the Android mobile device ecosystem.

CCI has also issued a cease and desist order to Google in order to put an end to such practices.

The Commission has directed Google to modify its conduct within a defined timeline after examining various practices of Google in the matter of licensing of Android mobile operating system and various proprietary mobile applications of Google namely Play Store, Google Search, Google Chrome and YouTube.

During the course of inquiry, Google argued about the competitive constraints being faced from Apple, CCI said in a statement.

The Commission said it had examined the substitutability between Google’s Play Store for Android OS and Apple’s App Store for iOS from the perspective of all t demand constituents and found that there is no substitutability between Google’s Play Store and Apple’s App Store.

The Commission further noted that there might be some degree of competition between the two mobile ecosystems — Android and Apple, however, that too is also limited at the time of deciding as to which device to buy. Based on its assessment, the Commission found Google to be dominant in all the mentioned relevant markets.

Violation of law by Google

CCI concluded: The mandatory pre-installation of the entire Google Mobile Suite (GMS) under MADA (with no option to un-install the same) and their prominent placement amounts to imposition of unfair conditions on device manufacturers and thereby in contravention of the provisions of the law.

Google has perpetuated its dominant position in the online search market resulting in denial of market access for competing search apps.

Google has leveraged its dominant position in the app store market for Android OS to protect its position in online general search in contravention of Section 4(2)(e) of the Act and that Google 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.

It noted that Google has leveraged its dominant position in the app store market for Android OS to enter as well as protect its position in OVHPs market through YouTube and thereby contravened provisions of the Competition Act.

The CCI also concluded that Google, by making pre-installation of Google’s proprietary apps (particularly Google Play Store) conditional upon signing of AFA/ ACC for all android devices has reduced the ability and incentive of device manufacturers to develop and sell devices operating on alternative versions of Android i.e., Android forks and thereby limited technical or scientific development to the prejudice of the consumers, in violation of the provisions of the Act.

The CCI also indicated some measures including that Google shall not incentivise or otherwise obligate OEMs for not selling smart devices based on Android forks and shall not restrict un-installing of its pre-installed apps by the users.