Google’s statement on CCI fine
“We have decided to appeal the CCI’s decision on Android as we believe it presents a major setback for our Indian users and businesses who trust Android’s security features, and potentially raising the cost of mobile devices,” a Google spokesperson said in a statement.
“Android has greatly benefitted Indian users, developers, and OEMs, and powered India’s digital transformation. We look forward to making our case and remain committed to our users and partners,” the spokesperson added.
The company said that it “strongly disagrees” with the CCI’s decision and after carefully considering the decision and its implications, it “is taking all appropriate legal steps to defend the Android business model in India.”
Why did the CCI impose a fine on Google?
The Indian watchdog found in an investigation that Google used its Android dominance to make it mandatory for OEMs to pre-install its entire Google Mobile Suite (GMS) on their phones and place them prominently. The GMS include apps such as Search, Maps, Chrome, YouTube, and Google Play store, among others.
The CCI found that this mandate “amounts to imposition of unfair conditions on the device manufacturers” and thus was in “contravention of the provisions of Section 4(2)(a)(i) of the [Competition] Act, [2002].”
As per the provisions of the act, “there shall be an abuse of dominant position under sub-section if an enterprise directly or indirectly, imposes unfair or discriminatory condition in purchase or sale of goods or services.”
Earlier this year, a report by Counterpoint Research claimed that 97% of 600 million smartphones in India run the Android operating system which makes it Google’s largest market by users.
CCI decision puts Indian users at risk: Google
Google has argued that CCI’s decision will put Indian users at risk of malware and make the Android system less safe than it is today. It also says that the open nature of Android business model supports competition to benefit all stakeholders. The company also notes “more choices” and support for thousands of businesses that Android has created.
“The decision exposes Indian users to unprecedented security risks; it will make Android devices in India more expensive, less functional and less safe than they are today. It will harm Indian developers whose costs will increase, and it will harm OEMs doing business in India,” the company said.
“Google is optimistic that the NCLAT will take into account this irreparable harm Android stakeholders will face if a stay is not granted pending the outcome of the appeal,” Google added.
CCI’s recommendations to Google
CCI said that Google should not make it mandatory for OEMs to choose Google’s proprietary apps and services to be pre-installed and placed prominently as well as not restrict uninstalling of its pre-installed apps by the users.
Google was also told to not offer any monetary/ other incentives to OEMs for ensuring exclusivity for its search services. “The company shall not deny access to its Play Services APIs to disadvantage OEMs, app developers and its existing or potential competitors,” the CCI order read.
Google argues that even Indian phone manufacturers (Micromax, Karbonn) disagree with the CCI’s remedies due to “its obvious adverse implications.”
“They see the damage that this decision will cause to the Android ecosystem, and ultimately Indian users. The CCI claims to have acted in the interest of OEMs. But it seems like this is not the case – the same partners CCI seeks to protect – are protesting the CCI’s decision,” Google said.
It also notes that the CCI’s decision will make the Android platform less attractive for app developers to write apps for.
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