Competition Commission of India Slaps Hefty Fine on Google; Details Inside

• CCI noted Google has leveraged its dominant position in app store market
• Section 4 of the Competition Act pertains to abuse of dominant position
• In 2019, CCI ordered a detailed probe on Google following complaints

Do you think Google is going through a rough patch? Can it handle the setback of the hefty fine leveled by Competition Commission of India on it?

Brief Summary

To say that Google is one of the biggest tech giants on the planet is a massive understatement because it has become a lifeline for billions of users worldwide. Today, it is virtually impossible to imagine your life without Google as its search engine has become the proverbial platform where people hope to get a solution.

All they need to do is to type a word or phrase in the Google search engine and press ‘Enter’, following which a slew of websites and articles will immediately pop up on the screen that will offer answers/solutions to the problem.

Gone are the days when students used to rely on their school/college textbooks of hardbound elastic with thousands of pages with bookish definitions that they would need to cram up in their minds.

Google India is arguably the most popular search platform in the country with nearly a billion users who look up to it when they want a platform where they need to search for their preferable content.

Google search is deemed more than enough to look up for a solution for all kinds of problems in life, both personal and professional, which is why Google has acquired the stature of being one of the top 10 or top 5 tech giants in the world, which it has consistently sustained in the past two decades despite facing competitive challenges.

Speaking of challenges, Google has been subjected to many legal hassles and financial penalties since the past two decades with the most recent one being filed by the Competition Commission of India (CCI), a renowned fair trade regulator in the country.

CCI has accused Google of indulging in unfair business practices in the android mobile device ecosystem and imposed a hefty penalty of Rs.1,337.76 crore on the tech giant for abusing its position of power in numerous markets.

CCI has further instructed Google to provide a defined timeline and modify its conduct instead of using its position and reputation for its own benefits and leveraging its dominance in the app store market.

Many Android smartphone users in India have leveled complaints on Google, based on which Competition Commission of India has ordered a detailed probe on the tech giant. For the unversed, Android is an open-source, mobile operating system that is installed by Original Equipment Manufacturers (OEMs) of smartphones, laptops, tablets, etc.

There are two agreements on which the allegations levelled on Google are based viz. Anti-Fragmentation Agreement (AFA) and Mobile Application Distribution Agreement (MADA), which were entered into Android OS OEMs.

CCI has also deemed the pre-installing Google Mobile Suite (GMS) under MADA, along with their prominent placement, as good as imposing of unfair conditions on device manufacturers as it contravenes the competition law, especially as there is no option to uninstall it.

Therefore, CCI has imposed the financial penalty on Google as the company has violated Section 4(2)(d) of the Competition Act, which is the code for violation of dominant position.

This alleged action by Google apparently denies market access for competing search apps, which is another violation of the competition law, as the tech giant seeks to enter as well as protect its position in non-OS specific web browser market via the Google Chrome app.

Conclusion

Competition Commission of India’s fine imposed on Google is to teach the tech giant a lesson so that it doesn’t abuse its position as not only does it violates the competition laws but also might prove to be detrimental to other applications.

Also Read: Google Probed by CCI; Tech Giant Allegedly Violates Revenue Sharing Terms