Google Abusing Position, Playing Unfair- Says CCI – Free PDF Download

What has happened?

• The investigation arm of the Competition Commission of India (CCI) has found,
• Google guilty of using anti-competitive, unfair and restrictive trade practices in the mobile operating system and related markets.

When the probe was ordered?

• In April 2019, the CCI had ordered a probe into the American search engine giant who with its Android OS controls over 98% of the Indian smartphone market.
• During the two-year long investigation, the panel questioned Google and other firms such as Apple, Microsoft, Amazon, Paytm, PhonePe, Mozilla, Samsung, Xiaomi, Vivo, Oppo and Karbonn.

Findings of the probe

• The probe revealed that Google India was guilty of stifling competition and innovation,
• In order to maintain its grip and dominance in search, music (through YouTube), browser (Chrome), app library Play Store) and other key services.
• The panel has accused Google of enforcing one-sided contracts on devices and app makers so that its own apps and products maintain primacy in consumer usage and come pre-installed on devices.
• “Google is found to be contravening the provisions of Section 4(2)(a)(i); Section 4(2)(b); Section 4(2)(c); Section 4(2)(d) and Section 4(2)(e) of the Competition Act,” the probe report summarised.
• It held Google guilty of multiple charges such as abuse of dominance in the market, restricting technical or scientific development,
• Relating to goods or services to the prejudice of consumers and denial of market access to competitors.

Complaints received by CCI

• The probe looked into multiple issues after CCI received complaints that Google India had restricted market access of rival mobile apps and services by requiring
• manufacturers of devices,
• To sign certain exclusive deals to pre-install Google’s proprietary apps or services.
• As per its own exclusive terms, the tech major offered its Google Mobile Services (GMS) suite which has apps such as Google Playstore, YouTube and Chrome bundled together.
• Device makers seeking to upgrade from the “bare Android version” are required to sign a Mobile Application Distribution Agreement (MADA) and further an Anti-Fragmentation Agreement (AFA)/Android Compatibility Commitment (ACC).
• This requires pre-installation of Google apps and placement of these on the devices.

Attractive revenue offered

• The report also mentioned that device manufacturers and other partners are offered attractive revenue- sharing agreements,
• For giving primacy to a Google-only ecosystem of services and applications.
• Regarding the search engine category, the probe says,
• “Competing general search services cannot offset the competitive advantage that Google ensures for itself through pre-installation and thus, acting as an entry barrier for competitors”.

What next?

• The 750-page report has been submitted to the CCI for consideration.
• If Google is held accountable, the firm may have to pay penalties.
• It could even be asked to discontinue practices that intend to undermine competition and are anti-consumer basis market dominance.
• Google has faced and is facing antitrust investigations in various parts of the globe – from the US to the European Union, Germany and Japan.

Q) Which of the following is correct regarding Competition Commission of India (CCI)?

1. It is a statutory body for enforcing the Competition Act, 2002.
2. CCI became fully functional in 2003.

1. 1 only
2. 2 only
3. Both 1 & 2
4. None of the above

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