Google Fined by India's Antitrust Regulator, Calls the Decision a 'Setback' for Consumers

By Kevin B. Simon

Cover Image Attribute: Breakout area in Google’s Gurgaon, India office/ Source: Mint, GettyImages

On October 21, the Competition Commission of India (CCI) imposed a provisional penalty of $162 million on Alphabet Inc’s Google for “abusing its market-dominant position” in multiple categories related to the Android mobile device ecosystem in the country. 

Google utilized its dominant position in markets such as online search and the app store for Android to safeguard the dominance of its Chrome and YouTube apps in mobile Web browsers and online video hosting.

In addition to the penalties, the CCI ordered Google to modify its Android platform strategy and prohibited it from entering into certain revenue-sharing agreements with smartphone manufacturers. It clearly stated, for instance, that Google should not deny access to its Play Services plugins to "disadvantaged" original equipment manufacturers (OEMs) and that OEMs should not be required to pre-install Google search, Chrome browser, YouTube, Google Maps, Gmail, or any other Google application to obtain Play Store licensing.

The CCI also stated that Google would be required to give customers the option of selecting a different search engine as their default during the initial configuration of their devices. In addition, it urged Google not to restrict app developers' ability to distribute their programs via side-loading – providing their software outside the Google Play Store. This is crucial since Google has long advised users not to side-load applications, stating that doing so poses possible harm to users' security.

CCI said in its order, "The competitors of these services could never avail the same level of market access which Google secured and embedded for itself through MADA (Mobile Application Distribution Agreement) Network effects, coupled with status quo bias, creating significant entry barriers for competitors of Google to enter or operate in the concerned markets."

The CCI has given Google 30 days to furnish the necessary financial details and supporting papers; the final penalty may be increased.

Response from Google

On October 21,  a Google spokesperson issued the following statement;

“Android has created more choices for everyone and supports thousands of successful businesses in India and around the world.” He added, “The CCI’s decision is a major setback for Indian consumers and businesses, opening serious security risks for Indians who trust Android’s security features and raising the cost of mobile devices for Indians.”

Google said it would review the decision to evaluate the next steps.

Background of the Case

In 2019, the CCI requested a comprehensive investigation in response to concerns from buyers of Android-based smartphones. Android is an open-source mobile operating system installed by OEMs of smartphones and tablets.

In September 2021, after a report of CCI’s initial findings on Google was leaked, the company initiated legal action against the regulator. This is the second time that the CCI has fined the tech giant. In 2018, it imposed a fine of Rs 136 crore on Google for unfair business practices in the Indian market for online search.

Google is facing a series of antitrust cases in India. The competition watchdog is also looking into Google’s business conduct in the smart TV market and its in-app payments system.

About the Author

Kevin B. Simon (ORCID: 0000–0002–2962–8008) is a Technology Editor at IndraStra Global with a keen interest in technology-driven businesses. He is a graduate in management studies (MBA) from the Institute of Management, Nirma University, Ahmedabad.

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