India penalises Google $162 million for Android anti-competitive behaviour

• ByStartupStory     |    October 22, 2022

The Competition Commission of India fined Google $161.9 million “for abusing its dominant position in several markets” by preferring its own line of Android apps, the agency announced in a news release on Thursday. 

The commission claimed that because the information obtained from users of Search, Chrome, and other Google services may be used to court advertisers, Google’s business model depends on having as many people utilise its goods and services as possible. In addition, the commission claims that Google contracts with device manufacturers to preinstall Google apps and services, giving it a “competitive edge.”

The commission issued a cease and desist order to prevent Google from “engaging in anti-competitive actions.” Additionally, it stated that Google shouldn’t be compelled to preinstall its apps on products, couldn’t offer financial or other benefits in exchange for exclusivity, and couldn’t restrict access to Play Services APIs. 

The commission stated that it disagreed with Google’s claim that Apple would be more difficult to defeat due to competition restrictions. The goal of Google is to grow consumers of services that generate income, such as Search, in contrast to Apple’s attempt to vertically integrate all of its products into one ecosystem. The move, according to Goo

According to a Google spokeswoman, “Android has increased options for everyone and helps hundreds of globally and in India successful enterprises. “The CCI’s ruling is a significant setback for Indian consumers and businesses, exposing those who rely on Android’s security features to substantial security concerns and driving up the price of mobile devices for Indians. To determine our course of action, we shall review the decision. 

The investigation into Google’s alleged anti-competitive actions in India comes as politicians and authorities in the US, Asia, and Europe examine the search giant’s monopoly. A record $4 billion fine for antitrust offences relating to agreements Google struck with Android manufacturers was upheld by a European court last month.Last month, South Korea penalised Google $177 million for requiring “anti-fragmentation agreements” from companies like Samsung and LG, which forbade the use of competing operating systems. Early this year, rumours of a potential lawsuit against Google for dominating the online advertising market started to circulate. 

Since Apple, Amazon, and Google have reported record profits, there has been a trend of increased scrutiny toward Big Tech corporations and their influence in general.

India is a country where Google is incredibly dominant. According to Statista, Android has a market share of over 95% in India. According to Deloitte estimates, there will be 1 billion smartphone users in the nation by the year 2026. And it isn’t finished. $10 billion is being invested by Google in India, of which $4.5 billion will go to Jio Platforms, a provider of music, movies, and telecom services.

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