Google India responds to Rs 936.44 crore penalty: Here’s what the company said

A day after the Competition Commission of India (CCI) imposed a penalty of Rs 936.44 crore on Google for abusing its dominant position with respect to its Play Store policies, the company has responded by saying that Indian developers have benefitted from the flexibility that Android and Google Play provide.
Google’s response
“Indian developers have benefited from the technology, security, consumer protections, and unrivalled choice and flexibility that Android and Google Play provide. And, by keeping costs low, our model has powered India’s digital transformation and expanded access for hundreds of millions of Indians. We remain committed to our users and developers and are reviewing the decision to evaluate the next steps,” a Google spokesperson said in a statement.

Why CCI imposed second fine on Google India
App developers have to take the app store’s route for distribution of their apps to the end users. Google’s Play Store is the main distribution channel for app developers in the Google-owned Android mobile ecosystem. The CCI found Google to be dominant in the markets for licensable OS for smart mobile devices & market for app stores for Android smart mobile OS, in India.
Additionally, in-app digital goods – an important means for app developers to monetise their creations/innovations – must be distributed to purchasing users via Google’s payment system. App developers are not allowed to provide users with a direct link to a webpage containing an alternative payment method or use language that encourages a user to purchase the digital item outside of the app. Furthermore, the app developers must comply with Google’s policy of using GPBS to list their apps on the Play Store and gain access to the vast pool of potential Android customers.
Also Read: More bad news for Google in India: CCI imposes Rs 936.44 crore penalty for anti-competitive practices
The CCI concluded that making access to the Play Store, for app developers, dependent on mandatory usage of GPBS for paid apps and in-app purchases constitutes an imposition of unfair conditions on app developers is in violation of the provisions of Section 4(2)(a)(i) of the Act.
Additionally, the watch also said that the practices followed by Google results in leveraging its dominance in the Indian market for licensable mobile OS and app stores for Android OS, to protect its position in the downstream markets. It is in violation of the provisions of Section 4(2)(e) of the Act, the CCI added.