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Wednesday, April 24, 2024

Google fined Rs 1,337.76 cr for abusing dominant position in Android ecosystem

Google has been ordered to pay a fine of Rs 1,337.76 cr as it abused its dominant position in the Android mobile ecosystem. The Competition Commission of India (CCI) also ordered Google to cease and desist from unfair business practices.

The Competition Commission of India fined Google $1,337.76 crore on Thursday for ‘abusing its dominant position’ in numerous regions in the Android mobile device ecosystem. The fair trade authority ordered the internet giant to stop engaging in unfair commercial practices.

The Competition Commission of India (CCI) stated in a statement that it has also instructed Google to adjust its behavior within a specific time frame.

According to the CCI, the mandatory pre-installation of the entire Google Mobile Suite (GMS) under the Mobile Application Distribution Agreement (MADA), with no option to uninstall it, and their prominent placement amount to the imposition of unfair conditions on device manufacturers, which violates competition law.

It continued, “These restrictions are also considered as additional responsibilities placed by Google on OEMs, and so in breach of Section 4(2)(d) of the Act,” it stated. Section 4 of the Competition Act concerns the misuse of dominant positions.

According to the CCI, Google has utilized its dominance in the app store market for Android OS to enter and protect its position in the non-OS specific web browser industry via the Google Chrome App.

According to the statement, “Google has used its dominating position in the app store market for Android OS to enter and defend its position in the Online Video Hosting Platforms (OVHPs) market through YouTube. This is in violation of Section 4(2)(e) of the Act.”

Following concerns from buyers of Android-based smartphones in the nation, the trade authority demanded a thorough inquiry into the subject in April 2019.

Android is a mobile operating system that is open source and is deployed by Original Equipment Manufacturers (OEMs) of smartphones and tablets. The charges of unfair business practices concerned two agreements — MADA and Anti Fragmentation Agreement (AFA) — signed by Android OS OEMs with Google.

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