38.6c New Delhi, India, Wednesday, May 29, 2024

CCI imposes Rs 1,336.76 Cr penalty on Google

By LawStreet News Network      21 October, 2022 06:20 PM      0 Comments
CCI imposes Rs 1,336.76 Cr penalty on Google

NEW DELHI: The Competition Commission has on Thursday imposed a penalty of Rs 1,337.76 crore on Google for abusing its dominant position in multiple markets in the Android mobile device ecosystem.

Besides, the fair trade regulator has directed the internet major to cease and desist from unfair business practices.

In a press release, the Competition Commission of India (CCI) said it has also directed Google to modify its conduct within a defined timeline.

"In relation to computation of penalty, the Commission noted that there were glaring inconsistencies and wide disclaimers in presenting various revenue data points by 
Google. However, in the interest of justice and with an intent of ensuring necessary market correction at the earliest, the Commission quantified the provisional monetary penalties on the basis of the data presented by Google," it said.

"Accordingly, the Commission imposed a penalty of Rs 1337.76 crore upon Google on provisional basis, for violating Section 4 of the Act. Google has been given a time of 30 days to provide the requisite 
financial details and supporting documents," it added.

In April 2019, the regulator ordered a detailed probe into the matter following complaints by consumers of Android-based smartphones in the country. Android is an open-source, mobile operating system installed by Original Equipment Manufacturers (OEMs) of smartphones and tablets.

The allegations of unfair business practices pertained to two agreements - Mobile Application Distribution Agreement (MADA) and Anti Fragmentation Agreement (AFA) - which were entered into by the OEMs of Android OS with Google.

In the release, the regulator said it has imposed a penalty of Rs 1,337.76 crore on Google for abusing its dominant position in multiple markets in the Android mobile device ecosystem apart from issuing the cease and desist order.

As per the release, CCI said that mandatory pre-installation of the entire Google Mobile Suite (GMS) under MADA, with no option to un-install the same, and their prominent placement amounts to imposition of an unfair condition on the device manufacturers and thereby contravenes competition law.

"These obligations are also found to be in the nature of supplementary obligations imposed by Google on OEMs and thus, in contravention of Section 4(2)(d) of the Act," it added.

Section 4 of the Competition Act pertains to the abuse of a dominant position.

Google has perpetuated its dominant position in the online search market resulting in the denial of market access for competing search apps. Also, it has leveraged its dominant position in the app store market for Android OS to protect its position in online general search which violates the competition law, it said.

[ Read Press Release ]

Share this article:

User Avatar

Leave a feedback about this

Trending Business
Battle Over Butter Chicken: Moti Mahal Takes Daryaganj to Court in Trademark Showdown

Moti Mahal and Daryaganj restaurants clash in Delhi High Court over trademark claims, each asserting they invented Butter Chicken and Dal Makhani.

28 May, 2024 11:33 AM
Trending Judiciary
Punjab and Haryana High Court Upholds ED's Arrest of AAP MLA, Dismisses Plea Challenging Detention [Read Order]

Punjab and Haryana High Court dismisses AAP MLA Jaswant Singh's plea against his ED arrest, ruling it was in line with Section 19(1) of the PMLA.

28 May, 2024 11:56 AM


Trending Judiciary
No legal mandate for uploading of Form 17C on website or handing over to anyone other than candidate or agent, EC tells SC

EC tells SC there's no legal mandate to upload Form 17C on websites or provide it to anyone other than candidates or agents, citing risks of misuse and mistrust.

23 May, 2024 11:28 AM
Trending Judiciary
'National security always paramount,' SC cancels bail of PFI members [Read Judgment]

SC emphasizes national security, cancels bail of eight PFI members, stressing balance between civil liberties and counter-terrorism under UAPA.

23 May, 2024 12:05 PM
Trending Judiciary
Calcutta HC Invalidates Five Lakh OBC Certificates Issued After 2010, Cites Unconstitutional Grounds [Read Judgment]

Calcutta High Court invalidates OBC certificates issued after 2010, declaring them unconstitutional. Court cites undue haste and procedural impropriety.

23 May, 2024 03:33 PM
Trending Judiciary
MP High Court Grants Police Protection to Couple Facing Honour Killing Threats over Marriage [Read Order]

MP High Court grants police protection to a couple facing death threats from their parents for marrying without consent, citing serious measures against honor killings.

23 May, 2024 03:45 PM


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email