Google was found guilty for ‘unfair’ Android business practises; now files an appeal

On the 20th of October, the Competition Commission of India slammed Google with a Rs. 1337.76 crore (equivalent to a sum of $161.9 million) fine for anti-competitive practices involving Android mobile devices in “multiple markets.”

In a press release, the Indian competition regulator said that Google was guilty of abusing its dominant position in multiple markets in the Android Mobile device ecosystem.

“Smart mobile devices need an operating system (OS) to run applications (apps) and programs,” the commission asserted. “Android is one such mobile operating systems which was acquired by Google in 2005. The Commission in the instant matter has examined various practices of Google w.r.t. licensing of this Android mobile operating system and various proprietary mobile applications of Google (e.g. Play Store, Google Search, Google Chrome, YouTube, etc.).”

The Indian agency, after its investigation, found Google to be guilty of the following; which it gave in a statement.

1. Google has perpetuated its dominant position in the online search market resulting in denial of market access for competing search apps in contravention of Section 4(2)(c) of the Act.
2. Google has leveraged its dominant position in the app store market for Android OS to protect its position in online general search in contravention of Section 4(2)(e) of the Act.
3. Google has leveraged its dominant position in the app store market for Android OS to enter as well as protect its position in non-OS specific web browser market through Google Chrome App and thereby contravened the provisions of Section 4(2)(e) of the Act.
4. Google has leveraged its dominant position in the app store market for Android OS to enter as well as protect its position in OVHPs market through YouTube and thereby contravened provisions of Section 4(2)(e) of the Act.
5. Google, by making pre-installation of Google’s proprietary apps (particularly Google Play Store) conditional upon signing of AFA/ ACC for all Android devices manufactured/ distributed/ marketed by device manufacturers, has reduced the ability and incentive of device manufacturers to develop and sell devices operating on alternative versions of Android i.e., Android forks and thereby limited technical or scientific development to the prejudice of the consumers, in violation of the provisions of Section 4(2)(b)(ii) of the Act.

Today is the 23rd of December, and Google says it has filed an appeal against the Indian antitrust body’s order against the company for allegedly anti-competitive practises involving Android mobile devices in India, which is the most important market outside of India.

TechCrunch reports the Tech Giant has approached the National Company Law Appellate Tribunal (NCLAT), the nation’s appellate tribunal, to appeal against the Competition Commission of India’s October order, in which the watchdog fined Google $162 million.

A Google spokesperson said, “We have decided to appeal the CCI’s decision on Android as we believe it presents a major setback for our Indian users and businesses who trust Android’s security features, and potentially raising the cost of mobile devices.”

“We look forward to making our case in NCLAT and remain committed to users and partners.”

In terms of user base, India is Google’s biggest market. Research firm Counterpoint estimates that 97% of the 600 million smartphones in use in the country are running Google’s Android operating system.

The company has already spent billions on its operations in India over the past decade, and it plans to spend another $10 billion over the next couple of years.