Google fined Rs 1337.76 crore in India for ‘abusing its dominant position’

India’s fair trade regulator – the Competition Commission of India (CCI)  – has imposed a monetary penalty of Rs 1337.76 crore on Google for abusing its dominant position in multiple markets in the Android Mobile device ecosystem. The fair trade regulator has also directed the tech giant to cease and desist from unfair business practices. The CCI said it has also directed Google to modify its conduct within a defined timeline. 

Mobile devices need an operating system (OS) to run applications (apps) and programs. Android is one such mobile operating system that was acquired by Google in 2005. The CCI examined various practices of the tech giant with regard to licensing of this Android operating system and various proprietary mobile applications of Google like Play Store, Google Search, Google Chrome, YouTube). 

During the inquiry, Google argued about the competitive constraints being faced by Apple. The commission said Apple’s business is primarily based on a vertically integrated smart device ecosystem which focuses on the sale of high-end smart devices with state-of-the-art software components, while Google’s business was found to be driven by “the ultimate intent of increasing users on its platforms so that they interact with its revenue earning service i.e., online search which directly affects the sale of online advertising services by Google”.

The CCI said mandatory pre-installation of the entire Google Mobile Suite (GMS) under the Mobile Application Distribution Agreement or MADA (with no option to un-install the same) and their prominent placement amounts to imposition of an unfair condition on the device manufacturers and thereby in contravention of the provisions of Section 4(2)(a)(i) of the Act. 

More details awaited