Google Says It Is 'Reviewing' Fresh CCI Penalty Of Rs 936.44 Crores Over Anti-Competitive Practices

The latest penalty follows another fine of Rs 1,337.76 crore on the tech giant for a similar reason.

Google has been accused of using its market dominance with respect to its Play store policies.

Source : Brett Jordan/Unsplash

Google on Tuesday was slapped with a fresh penalty of Rs 936.44 crores by the Competition Commission of India (CCI) over anti-competitive practices. Google offered a response to the newest fine, saying that it is reviewing the decision of the fair trade regulator and that it remains “committed” to its users and developers. The big-tech firm has been accused of abusing its dominant position in the market with respect to its Google Play store policies. The latest penalty follows another fine of Rs 1,337.76 crores on the tech giant for a similar reason, which was announced by the fair trade regulator on October 20.

"We remain committed to our users and developers and are reviewing the decision to evaluate the next steps," a Google spokesperson said, as per ANI. 

As per a CCI press release, a cease-and-desist order has also been imposed on Google. During its assessment, the CCI found that Google was "dominant in the markets for licensable OS for smart mobile devices and market for app stores for Android smart mobile OS, in India."

CCI noted that under Google’s Play store policies, app developers need to “exclusively and mandatorily” use the Google Play Billing System not just for receiving payments for apps distributed or sold through the Play store, but also for in-app purchases made by users. There’s no clause for developers to add a direct link for payments. 

The CCI last week slapped another fine of Rs 1,337.76 crores on Google for abusing its dominant position in several markets in the Android ecosystem. Google had also been directed to cease and desist unfair business practices and modify its conduct within a defined timeline. To that, the tech giant said that it will review the CCI order, claiming that the decision is a 'major setback for Indian consumers'.

The regulator in 2019 ordered a detailed probe into the matter following complaints by consumers of Android-based smartphones in the country.

For those unaware, Android is an open-source, mobile operating system installed by original equipment manufacturers (OEMs) on smartphones and tablets.

The allegations of unfair business practices pertained to two agreements — Mobile Application Distribution Agreement (MADA) and Anti Fragmentation Agreement (AFA) — which were entered into by the OEMs of Android OS with Google.

During the course of the inquiry, Google argued about the competitive constraints it faces from rival Apple.

In relation to understanding the extent of competition between Google’s Android ecosystem and Apple’s iOS ecosystem, CCI noted the differences between the two business models which affect the underlying incentives of business decisions.