India slaps Rs.1337 crore penalty on Google

India slaps Rs.1337 crore penalty on Google

The Competition Commission of India (CCI) has imposed a penalty of ₹1,337.76 crore on Alphabet’s Google for anti-competitive practices pertaining to Android mobile devices.

The Indian regulator CCI has released a notification in which it said that it has ordered the US tech giant to modify its conduct within a defined timeline. Even, the fair trade regulator has alerted the internet major to cease and desist from unfair business practices.

Android is an open-source, mobile operating system that is installed by Original Equipment Manufacturers (OEMs) of smart phones and tablets.

The regulator informed 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.

As per the Section 4 of the Competition Act Google is liable to abuse of dominant position therefore it has to be fined for this unfair practices.

Dominant position in app store:

Google has rendered its dominant position in the app store market for Android OS for entering as well as protect its position in Online Video Hosting Platforms (OVHPs) market through YouTube.

This dominance action is contravened provisions of Section 4(2)(e) of the Act.

Order of detailed probe:

The CCI had asked a detailed investigation into the matter following complaints by consumers of Android-based smart phones in the country.

The investigation arm of the CCI had charged Google for adopting anti-competitive, unfair and restrictive trade practices in the mobile operating system and related markets.

A two-year probe ordered by the CCI cleared that Google India was guilty of choking competition and innovation in the market to maintain its dominance in search, music, browser, app library and other key services.

Primacy for its products by default:

The investigation has also impeached Google of imposing one sided contracts on devices and on app makers to confirm its own products and applications maintained primacy in consumer usage and came in pre-installed as well as default options for highest user preference.

Worldwide probe against Google:

As same in India, Texas has also charged a lawsuit against Google for allegedly collecting biometric data of millions of its citizens without taking proper consent. The detailed report has been issued by the attorney general’s office in the country.

Google has faced and even is facing such probes worldwide from the US, European Union, Germany and Japan.

Question & Answer:

Q1. On which tech giant company the Competition Commission of India has imposed a penalty of Rs.1337 crore?

Ans. Google

Q2. Where is headquarter of Google located?

Ans. California, USA

Q3. What is the issue has found against Google by Indian regulator CCI (Competition Commission of India)?

Ans. Unfair trade practices (dominating position in the app store market)

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