New Delhi, October 25
In its second ruling against Google in less than a week, the Competition Commission of India (CCI) on Tuesday imposed a penalty of Rs 936.44 crore on the tech major for abusing its dominant position with respect to its Play Store policies. The regulator has also directed the company to cease and desist from unfair business practices and modify its conduct within a defined timeline.
The CCI found if app developers do not comply with the policy of using Google Play’s Billing System (GPBS), they are not permitted to list their apps on the Play Store. This access policy is “one-sided and arbitrary and devoid of any legitimate business interest,” it said. Based on its probe, the CCI found that mandatory usage of GPBS constituted the imposition of an unfair condition on app developers. Thus, Google is found to be in violation of the provisions of Section 4(2)(a)(i) of the Competition Act.
The CCI also found Google was not using GPBS for its own YouTube. This amounted to discriminatory conditions as YouTube is not paying the service fee imposed on other apps covered in the GPBS requirements.
The mandatory imposition of GPBS disturbed innovation incentives. It also led to denial of market access. The practices followed by Google resulted in leveraging its dominance in market for licensable mobile OS and app stores violated Section 4(2)(e) of the Act and different methodologies used by Google to integrate its own UPI app vis-à-vis other rival UPI apps led to violations of several provisions of the Act.
This is the second major CCI ruling against Google in less than a week. On October 20, the watchdog imposed a penalty of Rs 1,337.76 crore on the company for abusing its dominant position in multiple markets in relation to Android mobile devices. — TNS
Second antitrust penalty in a week
- CCI finds if app developers don’t comply with Google Play’s Billing System, they are not permitted to list apps on Play Store
- On October 20, CCI imposed Rs 1,337.76 cr penalty on tech major for abusing its dominant position
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