Google says CCI rulings will harm users, increase smartphone prices

In October, the CCI imposed a penalty of Rs 1,337.76 crore on Google for abusing its position in various markets in relation to Android mobiles

Ahead of a Supreme Court hearing, Google has said that the Competition Commission of India (CCI)'s ruling will make smartphones more expensive, harm internet, and increase risks to privacy and increase the cost for app developers. The CCI's antitrust ruling "strikes a blow" at the ecosystem-wide efforts to accelerate digital adoption in the country, it said.

"Google is appealing these directions before Indian courts. While there has been a lot of reporting and debate on the subject, it is critical that our users and stakeholders understand the full import of what lies at stake" the tech giant wrote in a blogpost .

Earlier this week, Supreme Court had agreed to hear Google's appeal on January 16, against NCLAT's order that refused to block CCI's Android antitrust ruling.

The CCI in October fined Alphabet Inc-owned Google $161 million for exploiting its dominant position in Android, which powers 97 percent of smartphones in India, and asked it to change restrictions imposed on smartphone makers related to pre-installing apps.

Google has so far said the CCI decision will force it to change its long-standing business model, but a court filing by the company reported by Reuters has quantified the impact and details the changes the company will need to make.

Google will need to modify its existing contracts, introduce new license agreements and alter its existing arrangements with more than 1,100 device manufacturers and thousands of app developers, it says.

Google has been concerned about the Indian decision as the remedies ordered are seen as more sweeping than the European Commission's landmark 2018 ruling for imposing unlawful restrictions on Android mobile device makers. Google has challenged the record $4.3 billion fine in that case.

Google licenses its Android system to smartphone makers, but critics say it imposes restrictions like mandatory pre-installation of its own apps that are anti-competitive. The company argues such agreements help keep Android free.

The CCI in October ordered Google to not prohibit un-installing of its apps by Android phone users in India -- currently, one can't delete apps such as Google Maps or YouTube from their Android phones when they come pre-installed.

The CCI also said Google's licensing of its Play Store "shall not be linked with the requirement of pre-installing" Google search services, the Chrome browser, YouTube or any other Google applications.

Rakesh Deshmukh, Co-founder and CEO of Indus OS, which competes with Google's app marketplace, said, "In its plea filed with the top court in the country, the tech giant has stated that the ruling will stall the growth of the Android ecosystem in the country, and thus adversely impact all the stakeholders and also drive up the device price point."

"The argument however is contradictory as competition breeds innovation which only makes technology more affordable for everyone. Google itself has pointed out that the prices of smartphone devices have dropped drastically over the last 5 years," he added.