Google says CCI penalty a 'major setback' for Indian consumers & businesses, will evaluate next steps

Internet giant Google has said the Competition Commission of India (CCI)'s October 20 decision is a "major setback for Indian consumers and businesses" and they will review the decision to evaluate the next steps.

On October 20, CCI 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 a cease and desist order. The competition watchdog also directed Google to modify its conduct within a defined timeline.

This development comes nearly three and half years after CCI ordered a probe against Google in April 2019, following a complaint by two antitrust research associates and a law school student in 2018. Google has been given 30 days to provide the requisite financial details and supporting documents, CCI said on October 20.

As per the order, Google can neither force original equipment makers (OEMs) of smart devices to pre-install its own apps, nor restrict users from uninstalling such apps. It also cannot offer any incentives to OEMs in order to ensure the exclusivity of its search services.

Read: CCI order against Google a win for Indian app developers, battle still goes on: Indus OS' Rakesh Deshmukh

The competition watchdog directed Google to allow the users, during the initial device setup, to choose their default search engine for all search entry points. "Users should have the flexibility to easily set as well as easily change the default settings in their devices, in minimum steps possible," it said.

Moreover, Google also has to allow the developers of other app stores to distribute their app stores through Play Store.

Apart from this, the US tech giant should not deny access to its Play Services APIs to "disadvantage OEMs, app developers and its existing or potential competitors". This will ensure interoperability of apps between the Android operating system that complies with Google's compatibility requirements and alternative versions of Android, also called as Android forks, the order read.

A Google spokesperson said this move "opens serious security risks for Indians who trust Android's security features" and raises the "cost of mobile devices for Indians".

The company's Android operating system powers 97-98% of the smartphones in the country, as per market research firm Counterpoint.

Apart from Android, the CCI has also opened similar antitrust investigations against Google over its alleged dominance in multiple areas, including its smart TV business, the mandatory use of Google Play Store’s payment system for paid apps and in-app purchases and news aggregation among others.