Google welcomed the Competition Commission of India's (CCI) approval of its settlement proposal in the Android TV antitrust case, a move expected to provide relief to the tech giant in its largest user market.
"Google is committed to abiding by applicable local laws in every country where we operate and are grateful to the CCI for the opportunity to engage and present our case" the company said in a statement on April 22.
"We also thank the CCI for instituting processes which enable constructive engagements between companies and the market, allowing for continued investment and growth" it added.
On April 21, CCI announced that it has agreed to the settlement proposed by Google under Section 48A (3) of the Competition Act, 2002, and the CCI settlement regulations of 2024.
This move comes at a time when India and the United States are engaged in broader trade negotiations that have been underway for sometime. US Vice President JD Vance is currently on a four-day visit to India.
The country's finance ministry also recently scrapped the 6 percent equalisation levy on online advertising services, addressing a long-standing demand from tech giants such as Google and Meta.
First company to use the settlement scheme
With this announcement, Google became the first company to make use of the settlement scheme introduced under the country's competition law in April 2023, which was officially notified in March 2024.
As part of the settlement, the tech giant is paying Rs 20.24 crore, following a 15 percent discount under the scheme.
Further, the antitrust watchdog also stated that under the "New India Agreement," Google will provide a standalone license for the Play Store and Play Services for Android smart televisions in India, thereby removing the requirement to bundle these services or impose default placement conditions.
"By waiving the need for a valid ACC (Android Compatibility Commitments) for devices shipped into India that do not include Google apps, OEMs (original equipment manufacturers) can now sell and develop incompatible Android devices without violating the TADA (Television App Distribution Agreement)" CCI stated.
India's competition watchdog had first ordered the investigation against Google over alleged abuse of its dominance in the Android operating system in India's smart television market. This was following a case filed by two lawyers Kshitiz Arya and Purushottam Anand.
In its order, CCI noted its initial view that Google is dominant in the market of licensable smart TV device operating systems in India.
It stated that Google misused its dominant position by enforcing restrictive agreements on OEMs, including compulsory bundling of the Play Store with Android TV OS and preventing the use or creation of rival forked Android versions through its Anti-Fragmentation Agreements.
These practices allegedly blocked market access, curbed competition, and placed unrelated obligations on Original Equipment Manufacturers (‘OEMs’), ultimately stifling innovation and violating provisions of Section 4 of the Act, the watchdog stated.
Google's other antitrust cases
Google is currently facing a series of antitrust probes from CCI for alleged abuse of dominance in its other businesses such news aggregation, and more recently, the company's policies regarding the real-money gaming segment.
Google was earlier fined Rs 1,337.76 crore for abusing its dominant position in the Android Mobile device ecosystem in October 2022. The company is said to have paid the entire penalty amount after The National Company Law Appellate Tribunal (NCLAT) upheld the fine in March 2023.
In March, the tribunal also upheld key aspects of the CCI's antitrust order against the tech giant for misusing its dominant position in relation to Play Store policies. However, it reduced Google's penalty from Rs 936.44 crore to Rs 216.69 crore.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
