Tech giant Google has warned that the growth of its massively popular Android ecosystem in India will stall due to an antitrust order by the Competition Commission of India (CCI) that asks it to change how it markets the Android platform, the media has reported. The Alphabet-owned company mentioned this in a Supreme Court challenge, reported news agency Reuters.
India's antitrust watchdog had penalised the Alphabet-owned company $161 million for exploiting its dominant position in the market for Android, which is present in 97 per cent of smartphones in India and is a key growth region for the US tech behemoth.
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Google has so far said the CCI decision will force it to change its long-standing business model, but its Indian Supreme Court filing for the first time quantifies the impact and details the changes the company will need to make. The tech behemoth will need to modify its existing contracts, introduce new license agreements and alter its existing arrangements with more than 1,100 device manufacturers and thousands of app developers, it says, the Reuters report added.
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Earlier this week, Google's plea for an interim stay on the antitrust ruling by CCI was dismissed by the National Company Law Appellate Tribunal (NCLAT).
The appellate tribunal directs Google to deposit 10 per cent of Rs 1337.76 crore fine, it has also issued notices to CCI and directed to list the matter on February 13, for a hearing over the interim stay, says a report by ET Telecom.
Google had challenged the CCI ruling in the Android case before the NCLAT and sought an immediate stay on the ruling. In the appeal, Google had challenged the findings as “patently erroneous” and ignoring “the reality of competition in India, Google’s procompetitive business model, and the benefits created for all stakeholders”.