Google vs CCI: SC's order a watershed moment for India's digital transformation, say local firms

Indian internet firms such as MapmyIndia and Indus OS have welcomed the Supreme Court's decision to reject Google's appeal against the Competition Commission of India (CCI)'s Android antitrust order, terming it as a watershed moment in the history of the country's digital transformation initiatives.

"Today marks one very critical step towards India breaking free from the digital slavery Google has perpetuated on Indians for the last 15 years, and it is the right moment for all Indians - consumers, media, app developers, OEMs, industry and government - to come together to create the our own indigenous Aatmanirbhar ecosystem that gives India its rightful place at the forefront of the world, independent of foreign big tech monopolies" said Rohan Verma, CEO of MapmyIndia, a local rival to Google Maps.

On January 19, the Supreme Court declined to stay Google's appeal against CCI's order that 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 in October 2022.

However, the apex court has given another week to comply with the CCI order. It also asked the National Company Law Appellate Tribunal (NCLAT) to dispose of the case by March 31.

Rakesh Deshmukh, the co-founder of home-grown application and content discovery platform Indus OS, that is now owned by PhonePe, said this decision will "usher in a cataclysmic change" in the Indian smartphone ecosystem and further improve digital penetration in our country.

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

Both the executives said the move will enable Indian consumers to use indigenous products in areas such as digital mapping and app marketplaces, which they claim is better equipped to meet the preferences of users in the country.

Naval Chopra, Partner, Competition Law Practice at Shardul Amarchand Mangaldas & Co mentioned that this was a "landmark decision in the history of competition law jurisprudence in India and globally".

"It will open markets for Google's competitors, who have long been marginalized by the tech behemoth's vice-like grip over the Android ecosystem. India as a market offers an unprecedented untapped user base, which makes these remedies even more effective" Chopra said.

Last week, Google had warned that CCI's directions will make smartphones more expensive, lead to higher cost for app developers, harm the internet, increase risks to privacy and even pose threats for individual and national security.

"Predatory apps that expose users to financial fraud, data theft and a number of other dangers abound on the internet, both from India and other countries. While Google holds itself accountable for the apps on Play Store and scans for malware as well compliance with local laws, the same checks may not be in place for apps sideloaded from other sources," the company said in a blogpost on January 13. Google is yet to comment on the Supreme Court's decision.