Google fined by CCI for abusing its dominant position, issued cease and desist order

Google has been fined Rs. 1337.76 crores for abusing its dominant position in multiple Android Mobile device ecosystem markets. 

Here's the official tweet from CCI regarding this. 

CCI was investigating if Google was abusing its dominant position in 5 relevant markets: licensable OS, the app store for Android, web search services, non-OS specific web browsers, and online video hosting platform. The watchdog has found that Google was guilty in all five markets. 

Google argued with CCI about the competition faced by it Apple on all these constraints. But CCI has concluded that Apple’s business model differs from Google's as it relies on its vertically integrated ecosystem while Google’s business model relies on ultimately increasing the users on its platforms.

It was also noted that there is some degree of competition between the iOS and Android platforms, but that is limited to the time of the decision to buy the device.

Google has been under scrutiny from various anti-trust watchdogs worldwide for its monopolistic practices on search and Android. 

Fines from anti-trust bodies aren't anything new for Google. Just recently, Google was slapped with a $4 Billion fine in Europe after losing an antitrust appeal. 

What's more interesting is the cease and desist order imposed by CCI on anti-competitive practices. CCI has also indicated some of the measures as follows:

i. OEMs shall not be restrained from (a) choosing from amongst Google’s proprietary applications to be pre-installed and should not be forced to pre-install a bouquet of applications, and (b) deciding the placement of pre-installed apps, on their smart devices.

ii. Licensing of Play Store (including Google Play Services) to OEMs shall not be linked with the requirement of pre-installing Google search services, Chrome browser, YouTube, Google Maps, Gmail or any other application of Google.

iii. Google shall not deny access to its Play Services APIs to disadvantage OEMs, app developers and its existing or potential competitors. This would ensure interoperability of apps between Android OS which complies with compatibility requirements of Google and Android Forks. By virtue of this remedy, the app developers would be able to port their apps easily onto Android forks.

iv. Google shall not offer any monetary/ other incentives to, or enter into any arrangement with, OEMs for ensuring exclusivity for its search services. 

v. Google shall not impose anti-fragmentation obligations on OEMs, as presently being done under AFA/ ACC. For devices that do not have Google’s proprietary applications pre-installed, OEMs should be permitted to manufacture/ develop Android forks based smart devices for themselves.

vi. Google shall not incentivise or otherwise obligate OEMs not selling smart devices based on Android forks.

vii. Google shall not restrict uninstalling of its pre-installed apps by the users. 

viii. Google shall allow the users, during the initial device setup, to choose their default search engine for all search entry points. Users should have the flexibility to easily set as well as easily change the default settings in their devices, in minimum steps possible.

ix. Google shall allow the developers of app stores to distribute their app stores through Play Store.

x. Google shall not restrict the ability of app developers, in any manner, to distribute their apps through side-loading.

Google needs to make huge changes to comply

The ramifications of these measures can be huge if it comes into effect. This undermines the primary approach of Google with Android. It forces the company to change how it operates the Android ecosystem in India and possibly the world. 

For instance, it states that Google should allow users to choose the default search engine at the initial device setup. 

As you can see, these measures suggested by CCI would require considerable changes to be made by Google in Android to be compliant. Google cannot comply with these measures without making fundamental changes to its business practices. It needs to be seen if CCI will follow up with Google if it is following these measures in the future. It will be a welcome sight to see 

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