Google Accuses CCI Of Ordering Changes To Its Business Model To Protect Amazon: Report

In October last year, the CCI ordered that Google's restrictions impeded Amazon's progress in developing a customised version of the Android system. Google contends that the CCI's directives

Google has accused the antitrust body CCI of ordering changes to its business model to favor rival Amazon, reported Reuters citing the company's latest filing with Supreme Court. Google has filed a petition with the Supreme Court to overturn the CCI's order that requires it to make 10 changes to its business model due to alleged abuse of its dominant position with its Android operating system.

In October last year, the CCI ordered that Google's restrictions impeded Amazon's progress in developing a customised version of the Android system. Google contends that the CCI's directives were primarily aimed at safeguarding Amazon rather than addressing antitrust issues, as per the report. 

The CCI's order said that Google had exploited its dominant market position with the Android operating system, which is used by 97 per cent of smartphones in India. The CCI ordered changes to Google's business model.

Google's recent filing with the Supreme Court showed its growing dispute with the CCI regarding the investigation into its Android system, as per the report. 

In a previous filing with the NCLAT in December, Google alleged that CCI officers had "copypasted" portions of a European ruling against the company in a similar case. The CCI has denied these claims.

As part of the CCI's October order, which also included a fine of $163 million, Google was instructed to allow the widespread distribution of modified versions of its Android operating system, known as Android forks, without any licensing restrictions regarding the pre-installation of Google apps.

The report said that as per Google's Supreme Court filing on June 26, during the CCI investigation, Amazon said that Google's restrictions impeded the development of its Android fork known as Fire OS. Google argued that the watchdog unjustly relied on this information when reaching its adverse decision against the company.

"Globally, FireOS failed commercially due to poor user experience. In India, the Fire Phone was not even launched. Thus, the Commission called Amazon's lack of attempt to compete in India a failure and attributed it to Google's agreements," Google argued, as per the report. Adding that the CCI's ruling was "only to protect Amazon - who complained that its attempts at creating a forked version of the Android did not work because of (Google's) restrictions."

Google has raised significant concerns about the Competition Commission of India's (CCI) decision regarding Android, viewing the directives as more extensive than the landmark ruling by the European Commission in 2018 that addressed Google's abuse of the Android market.

In 2021, Google faced a fine of $159 million in South Korea for its practices of blocking customised versions of Android.

Google has initiated challenges against the orders issued by both the South Korean authorities and the European Commission.

In response to the CCI's directive, Google has implemented significant changes to its Android business model in India. While earlier this year, the NCLAT ruled that Google should pay the penalty and confirmed its market position abuse in alignment with the CCI's findings, the US company is still pursuing the matter in the Supreme Court, continuing its legal battle.