CCI imposes Rs 1,338 crore fine on Google for 'abusing its dominant position in Indian Market'

Google, a subsidiary of Alphabet Inc, was fined 1,337 crore by the country's competition authorities for anti-competitive conduct using Android mobile devices.  For "abusing dominant position in multiple markets in the Android mobile device ecosystem," the Competition Commission of India (CCI) issued a punishment, as announced through Twitter.

In addition, the internet giant has been ordered by the fair trade authorities to end its unfair business practises. The Competition Commission of India (CCI) said in a press release that Google has been ordered to change its behaviour by a certain date.

"Smart mobile devices need an operating system (OS) to run applications (apps) and programs. Android is one such mobile operating systems which was acquired by Google in 2005. The Commission in the instant matter has examined various practices of Google w.r.t. licensing of this Android mobile operating system and various proprietary mobile applications of Google (e.g. Play Store, Google Search, Google Chrome, YouTube, etc.)," CCI said in a statement.

The CCI said that Google had raised concerns about Apple Inc.'s impact on the industry as a whole in its arguments. According to the CCI, Apple's business is predicated on a vertically integrated smart device ecosystem that prioritises the selling of high-end smart gadgets with sophisticated software components, whereas Google's business is predicated on the distribution of ad space across several platforms.

CCI imposes monetary penalty of ₹ 1337.76 crore on Google for abusing dominant position in multiple markets in the Android Mobile device ecosystem.
Press Release: https://t.co/sXXA0RvK51#Antitrust #AntitrustOrder #antitrustlaw #Google #CCI pic.twitter.com/FE5Yh8PWr4

— CCI (@CCI_India) October 20, 2022

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"Whereas Google's business was found to be driven by the ultimate intent of increasing users on its platforms so that they interact with its revenue earning service i.e., online search which directly affects sale of online advertising services by Google," said the statement.

According to the competition watchdog, Google's operation is motivated by the "ultimate ntent of increasing users on its platforms" so that they engage with its revenue-generating service, i.e., online search, which directly influences Google's sale of online advertising services.