Google’s vs CCI impact on Android users. According to Google, the CCI’s order “hits a blow” to efforts to accelerate digital adoption in the country, and the charge against Android could have far-reaching implications. What exactly is the issue?
According to Google, the Competition Commission of India’s (CCI) order against Android’s operating system policies will raise device prices in India and promote the proliferation of unregulated apps that endanger personal and societal security.
According to Google, the CCI’s order “threatens” efforts to accelerate digital adoption in the country, and the charge against Android could have far-reaching implications. We provide clarification.
The CCI fined Google twice for unrelated violations late last year. The company was fined more than Rs. 1,300 crores for allegedly “abusing its market dominance” in several areas related to the local Android mobile device ecosystem. Analysts believe the regulator’s other requirements will jeopardise Google’s ability to profit in the market.
Google must not deny “disadvantaged” OEMs access to Play Services plugins, and Play Store licencing to OEMs must not be tied to the requirement of pre-installing Google search, Chrome browser, and YouTube, Google Maps, Gmail, or any other Google application. It has also asked Google not to limit app developers’ ability to distribute their apps outside the Google Play Store via side-loading.
Google was accused of abusing its dominant position in the licencing of its mobile operating system, the Android app market, general web search services, non-operating system-specific mobile web browsers, and online video hosting services, according to the antitrust watchdog.
“Competitors of these services could never obtain the same level of market access that Google secured and embedded for mainly itself through MADA (Mobile Application Distribution Agreement) Network effects combined with status quo bias, creating significant entry barriers for Google’s competitors to enter or operate in the concerned markets,” according to the CCI order.
Google Vs CCI: What Google thinks about it?
In India and other countries, online predator apps are widely available, exposing users to financial fraud, data theft, and other risks. Google warned in a blog post on Friday that the same checks may need to be put in place for apps sideloaded from other sources. “Google also holds itself accountable for apps on the Play Store, such as malware scans and compliance with local laws,” the company says.
“Unchecked proliferation of mainly such apps on less secure devices can expose vast swaths of Indian users to the risk of their data being exposed, posing threats to individual and national security,” according to the report.
According to Google, multiple Android “forks” harm the stable and predictable ecosystem that has benefited users and developers for more than 15 years. It stated that these forks would not support Google’s security and user safety features and that OEMs would bear future costs. According to the tech titan, this would lead to higher OEM costs and, as a result, more expensive devices for Indian consumers.
Google also warned that app developers’ costs would rise if the CCI’s directives were followed. According to the company, small developers will also be forced to prioritise which of the current various incompatible Android “forks” they also write and maintain apps for in a forked Android environment because their costs will rise with each different version they support.
More prominent developers will be able to dominate the market based on size rather than product quality, and the market will be less level than it currently is with Android.
A high court battle is currently underway. Google’s appeal was denied by the National Company Law Appellate Tribunal (NCLAT), and the antitrust watchdog’s order did not stay. After appealing the NCLAT’s decision, Google will present its case to the Supreme Court on January 16.
Google was fined Rs 1,337.76 crore ($162 million) by the main Competition Commission of India (CCI) for “abusing its market dominant position” in several areas relating to the Indian market for Android mobile devices.
Google was accused of abusing its dominant position in the licencing of its mobile operating system, the Android app market, general web search services, non-operating system-specific mobile web browsers, and online video hosting services, according to the antitrust watchdog.
The CCI issued cease and desist orders to the tech behemoth for various business practises. It stated, for example, that Google should not bar “disadvantaged” OEMs from using its Play Services plugins and that OEMs should not be required to pre-install Google search, Chrome, YouTube, Google Maps, Gmail, or any other Google app to licence Play Store.
According to the CCI, Google must allow users to choose their preferred search engine during device setup. It asked Google not to restrict app developers’ ability to distribute their apps via side-loading or make them available outside the Google Play Store. This is significant because, due to security concerns, Google has long advised users, not to side-load apps.
Google has been given 30 days by the CCI to submit the necessary financial information and supporting documentation or face a larger penalty.
CCI claims that because Google owns the Android operating system and other licences, it has a competitive advantage in that it can pre-install the Chrome browser and other popular search entry points, such as search apps and widgets, on Android devices. Google also had a significant competitive advantage over its other revenue-generating Android apps, such as YouTube.
“Competitors of these services could never obtain the same level of market access that Google secured and embedded for itself through MADA (Mobile Application Distribution Agreement) Network effects, combined with status quo bias, creating significant entry barriers for Google’s competitors to enter or operate in the concerned markets,” the CCI order states.
In response to complaints from Android smartphone users, the CCI ordered a thorough investigation in 2019. Android, an open-source mobile operating system, is installed on smartphones and tablets by OEMs.
In September 2021, after a report detailing CCI’s preliminary conclusions about Google was leaked, the company filed a lawsuit against the watchdog. The CCI has now fined Google twice. Google was fined Rs 136 crore in 2018 for unethical business practices in the Indian online search market.
Google is facing numerous antitrust cases in India. The FTC is also looking into Google’s business practices in the smart TV market, as well as its in-app payment system.
Laying the groundwork for the success of CCI
Compared to the fines imposed on Google by other jurisdictions, the CCI’s penalty is significantly lower. The European Commission fined Google 2.42 billion euros in 2017 for violating EU antitrust laws by unfairly benefiting its comparison shopping service by abusing its search engine market dominance. The European Court of Justice’s General Court upheld in large part the EU executive commission’s 2018 decision to fine Google more than 4 billion euros ($3.99 billion) this year.
edited and proofread by nikita sharma
