India slaps Google with a ₹1,337 crore fine for anti-competitive practices and ‘abusing its dominant position’

India’s competition regulator has fined Alphabet Inc’s Google ₹ 1,337 crore for anti-competitive practices related to Android mobile devices.

The Competition Commission of India, or CCI, tweeted it fined Google for “abusing dominant position in multiple markets in the Android mobile device ecosystem.”

The Competition Commission of India, in a media release, said that it has also directed Google to modify its conduct within a defined timeline.

The regulator in its released said that mandatory pre-installation of entire Google Mobile Suite (GMS) under Mobile Application Distribution Agreement (MADA), with no option to un-install the same, and their prominent placement amounts to imposition of unfair condition on the device manufacturers and thereby contravenes competition law.

The CCI said Google had argued about the competitive constraints being faced from Apple Inc.

Back in April 2019, the CCI had ordered a detailed investigation into the matter following complaints by consumers of Android-based smartphones in the country.

A two-year probe ordered by the CCI found that Google India was guilty of stifling competition and innovation in the market to maintain its dominance in search, music, browser, app library and other key services, according to reports.

The investigation has also accused Google of imposing one sided contracts on devices and on app makers to ensure that its own products and applications maintained primacy in consumer usage and came in pre-installed as well as default options for highest user preference.

The CCI said the differences in the two business models that affect the underlying incentives of business decisions are that Apple’s business is primarily based on a vertically integrated smart device ecosystem, which focuses on sale of high-end smart devices with advanced software components.