Indian users will now have the option to choose their default search engine while setting up a new Android smartphone or tablet in the country.
Google will allow device makers to license individual Google apps to pre-install on their devices and shortly roll out third-party in-app billing to all apps and games in India, as the tech giant makes sweeping changes to its Android and Play business in the country to comply with the Competition Commission of India (CCI)'s recent antitrust directives.
These changes come after the Supreme Court declined to stay Google's appeal against CCI's order on January 19, while extending the deadline to comply with the watchdog's directive by a week to January 26.
In October 2022, CCI had directed the tech giant to modify its conduct towards smartphone makers through a range of corrective measures besides imposing a penalty of Rs 1,338 crore for exploiting its dominant position in Android.
Through a separate order in the same month, CCI also directed Google not to restrict app developers from using any third-party billing or payment processing services to purchase apps or for in-app billing on Google Play besides a range of corrective measures to modify the company's app payment policies.
It also fined Google Rs 936.44 crore for abusing its dominant position with regard to its Play Store policies.
Choice of default search engine
In a blogpost on January 25, Google said it is updating its Android compatibility requirements to introduce changes for device makers to build non-compatible or forked variants of Android.
Indian users will now have the option to choose their default search engine through a choice screen that will soon start to appear when a user sets up a new Android smartphone or tablet in the country.
"We take our commitment to comply with local laws and regulations in India seriously. CCI's recent directives for Android and Play require us to make significant changes for India, and today we’ve informed the CCI of how we will be complying with their directives" the company said in the blogpost.
"We continue to respectfully appeal certain aspects of the CCI’s decisions and will champion our core principles of openness, expanding user choice, providing transparency and maintaining safety and security that have served the interests of the larger ecosystem," it added.
Google also mentioned that it recently made changes to the Android installation flow and the auto-updating capability for sideloaded apps and app stores while ensuring users "understand the potential security risks", without disclosing any specific details.
"Implementation of these changes across the ecosystem will be a complex process and will require significant work at our end and, in many cases, significant efforts from partners, original equipment manufacturers (OEMs) and developers" it said.
The Android operating system currently powers around 97 percent of the country's 600-million strong smartphone market. India is also among the biggest markets for Google Play in terms of app downloads and users.
Third-party billing to all apps in India
In the blogpost, Google said that it will roll out user choice billing to all apps and games starting next month. This payment option will enable developers to offer an additional billing system to users in addition to Google Play when purchasing in-app digital content.
In September 2022, Google had extended its third-party in-app billing pilot programme to India and four other markets such as Australia, Indonesia, Japan, and the European Economic Area, wherein participating developers can offer an additional billing system to users in addition to Google Play for a reduced service fee ranging from 6-11 percent. This pilot however had excluded game developers.
In recent years, Google has faced intense backlash from Indian developers over its app policies, particularly after the company's announcement in October 2020 that it will begin enforcing a mandatory integration of its Play billing system across the world.
Subsequently, in November 2022, Google said it will be pausing the enforcement of its in-app billing system in India following the CCI's antitrust order on Play billing. The policy has already been made mandatory for in-app digital content purchases for users outside of India.
Moneycontrol had previously reported that India is emerging as a key monetization opportunity for Google Play, driven by the rising adoption of digital transactions in the country.
Indian apps and games saw an 80 percent increase in consumer spends in 2021 compared to 2019 on Google Play. These apps also clocked a 200 percent jump in monthly active users on Google Play in 2021 compared to 2019, while registering a 150 percent increase in time spent by users outside the country in 2021 compared to 2019 on Google Play.
Rohan Verma, CEO of digital mapping firm MapmyIndia, however said these measures are "piecemeal, and being done in the way Google wants", stating that the outcome of these steps will not lead to "on-ground impact of enhancing competition"
"It is unfortunate that rather than comply fully in letter, in spirit, and in time, with the orders of the apex court of India, Google is still attempting to dilute and delay the outcome of the CCI investigation and directives and defy the order of the honourable Supreme Court" Verma said.
