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Google Slapped with Rs 1,337.76 Crore Fine for Anti-competitive Ways

New Delhi: American technology giant Google has been slapped with a penalty of Rs 1,337.76 crore for abusing its dominant position in multiple markets in the android mobile device ecosystem by the Competition Commission. In a release, the CCI said it has also directed Google to modify its conduct within a defined timeline.Also Read – Google Will Soon Alert Parents When Their Kids Leave School. Check New Feature Here

Besides, the fairtrade regulator has directed the internet major to cease and desist from unfair business practices. Also Read – Google Ki Diwali: Light Up! Tech Giant Has Unique Diwali Surprise For Its Users!

To recall, the regulator in April 2019 had ordered a detailed probe in the matter following complaints by consumers of Android-based smartphones in the country. Android is an open-source, mobile operating system installed by Original Equipment Manufacturers (OEMs) of smartphones and tablets. Also Read – Your Google Meet Calls Can Soon Be Transcribed Into Text. Here’s How You Can Access The File

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.

Key Takeaways from The CCI Release:

  • The regulator said it has imposed a penalty of Rs 1,337.76 crore on Google for abusing its dominant position in multiple markets in the Android mobile device ecosystem apart from issuing the cease and desist order.
  • CCI said that mandatory pre-installation of the entire Google Mobile Suite (GMS) under MADA, with no option to un-install the same
  • The prominent placement amounts to imposition of unfair conditions on the device manufacturers and thereby contravenes competition law.
  • “These obligations are also found to be in the nature of supplementary obligations imposed by Google on OEMs and thus, in contravention of Section 4(2)(d) of the Act,” it added.
  • Section 4 of the Competition Act pertains to the abuse of a dominant position.
  • Google has perpetuated its dominant position in the online search market resulting in the denial of market access for competing search apps.
  • Google has leveraged its dominant position in the app store market for Android OS to protect its position in online general search which violates the competition law.
  • CCI noted that the internet major 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.

“Google has leveraged its dominant position in the app store market for Android OS to enter as well as protect its position in Online Video Hosting Platforms (OVHPs) market through YouTube and thereby contravened provisions of Section 4(2)(e) of the Act,” the release said.

(With Agency Inputs)




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