Google Fined 1337 Cr. In India by CCI for Pre-installed Apps Google Search, Chrome and YouTube for unfair practices - Abusing its dominant Position
Google has been fined Rs 1337 crore by the Competition Commission of India (CCI) for abusing its dominant position in India's Android ecosystem. The CCI ordered Google to stop its anti-competitive behavior and to change its practices. After receiving complaints from Android users, the CCI began a thorough investigation.
The CCI found that Google misused its dominant position by entering the app store market and the non-OS web browser market. It also violated Section 4(2)(e) of the Act by entering the online video hosting platform market. The CCI further found that Google used its position to enter the app store market and protected its position through the Google Chrome App.
The CCI referred the case to the European Commission's competition authority, which rejected Google's arguments regarding Apple's competition. It noted that the two companies have different business models, with Apple focusing on selling high-end smart devices with state-of-the-art software components. In contrast, Google's business model is more focused on attracting users to its platforms and earning ad revenue.
While competing search services could have had distribution channels with OEMs, Google's exclusivity with Android devices meant it was impossible for them to find distribution channels. In addition to preventing rival search services from entering the market, the FTC found that Google's dominance could not have prevented its competitors from using Android on mobile devices, which in turn led to uninterrupted growth in advertisement revenue.
Google is given 30 days to provide financial details and support documents. If Google fails to comply with the terms of its settlement, it faces a legal penalty of up to Rs 1337 Crore. The company has said it will provide these financial details within 30 days. Thereafter, it will have to repay all the fines.
Google's licensing practices have also been the subject of scrutiny by the Competition Commission of India. The CCI has ordered the company to remove certain proprietary applications from its mobile devices. In addition, Google must ensure that consumers can easily uninstall a proprietary application pre-installed on their devices.