Fair trade regulator directs Google to stop and abstain from unfair business practices
Fair trade regulator directs Google to stop and abstain from unfair business practices
The Competition Commission on October 20 imposed a fine of ₹1,337.76 crore on Google for abusing its dominant position in multiple markets in the Android mobile device ecosystem.
In addition, the fair trade regulator has directed the internet major to stop and stop unfair business practices.
In a release, the Competition Commission of India (CCI) said it has also directed Google to revise its conduct within a stipulated time frame.
In April 2019, the regulator ordered a detailed investigation 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 pertain to two agreements – the Mobile Application Distribution Agreement (MADA) and the Anti-Fragmentation Agreement (AFA), which were entered into with Google by the OEMs of the Android OS.
In the release, the regulator said it has imposed a fine of ₹1,337.76 crore on Google for abusing its dominant position in multiple markets in the Android mobile device ecosystem, apart from issuing a cease-and-desist order.
According to the release, the CCI stated that the mandatory pre-installation of the entire Google Mobile Suite (GMS) under MADA, with no option to uninstall it, and their key placement violates and thereby imposes an unfair position on the device manufacturers. competition law.
It said, “These obligations are also found to be in the nature of supplementary obligations imposed by Google on the OEM and, thus, are in contravention of section 4(2)(d) of the Act.”
Section 4 of the Competition Act deals with abuse of dominant position.
Google continues to dominate the online search market, resulting in the denial of market access to competing search apps. In addition, it has leveraged its dominant position in the App Store market for Android OS to defend its position in general online search that violates competition law.
In addition, the CCI noted that the Internet major has leveraged its dominant position in the App Store market for Android OS as well as protected its position in the non-OS specific web browser market through the Google Chrome app.
“Google has taken advantage of its dominant position in the App Store market for Android OS by entering the Online Video Hosting Platform (OVHPs) market through YouTube and as such under Section 4(2)(e) of the Act. has violated the provisions of ,” the release said.