The Competition Commission of India (CCI) imposed a penalty of ₹936.44 Crore on Google yesterday. The tech giant was found guilty of busing its market position on Play Store to promote its payments app and in-app payment system. The anti-competitive has directed the company to cease and desist from unfair business practice.
It said that Google should not restrict app developers from using any third-party billing or payment processing services, either for in-app purchases or for purchasing apps. “The Commission hereby directs Google to cease and desist from indulging in anti-competitive practices,” the CCI said in a statement.
In response, a Google spokesperson said, “We remain committed to our users and developers and are reviewing the decision to evaluate the next steps,” as per a tweet by news agency ANI.
“Indian developers have benefited from tech, security, consumer protections & unrivalled choice and flexibility that Android & Google Play provide. By keeping costs low, our model powered India’s digital transformation and expanded access for hundreds of millions of Indians”, the spokesperson added.
Second penalty in a month
This is the second fine imposed by India’s competition watchdog this month on Google. Earlier, Google was fined $162 million or ₹1,337.76 crore by the CCI for anticompetitive practices related to Android. In a probe conducted by the CCI, Google was found abusing its commanding position in the local smartphone market. After examination, it was found that “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 Play Store to protect its dominant position in online general search in contravention of Section 4(2)(e) of the Act.”
According to research agency Counterpoint, the California-based company’s Android mobile operating system is by far the dominant player in India and is run on 95 percent of all the country’s smartphones.
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