The Indian fair-trade regulator alleged that Google had abused its dominant position in the licencing of its mobile operating system, the Android app store market, general web search services, non-operating system specific mobile web browsers, and online video hosting services
Google fined $162m by the Competition Commission of India. (Credit: The Pancake of Heaven!/Wikimedia Commons)
The Competition Commission of India (CCI) has imposed a fine of INR13.37bn ($161.9m) on Google for its alleged anti-competitive practices in connection with Android mobile devices.
The Indian anti-trust watchdog said that the compulsory pre-installation of the entire Google Mobile Suite (GMS) under Mobile Application Distribution Agreement (MADA), without any option to uninstall, contravenes competition law.
Android, an operating system (OS) to run applications and programmes on smart mobile devices, was acquired by Google in 2005, noted the CCI.
The Indian fair-trade regulator delineated five relevant markets in its probe, which include the licencing of mobile operating system, the Android app store market, general web search services, non-operating system specific mobile web browsers, and online video hosting services.
Based on its evaluation, the CCI found Google has been dominating all five relevant markets.
The CCI has ordered the internet company to cease and desist from improper business practices along with directing it to modify its conduct within a defined timeline.
The Commission said that Google has breached provisions of Section 4 of the Competition Act, 2002.
The CCI stated: “Google has perpetuated its dominant position in the online search market resulting in denial of market access for competing search apps in contravention of Section 4(2)(c) of the Act.
“Google has leveraged its dominant position in the app store market for Android OS to protect its position in online general search in contravention of Section 4(2)(e) of the Act.
“Google has leveraged its dominant position in the app store market for Android OS to enter as well as protect its position in non-OS specific web browser market through Google Chrome App and thereby contravened the provisions of Section 4(2)(e) of the Act.”
The Commission has ordered Google not to force users to pre-install GMS under MADA.
Google has been asked by the regulator to allow users to choose their default search engine during the initial device setup.
Furthermore, the global internet firm should not restrict the ability of app developers to distribute their apps through Play Store.