Competition Commission slaps ₹1,338-crore penalty on Google for unfair practices

The fair trade regulator has directed Google to cease and desist from unfair business practices

The Competition Commission on October 20 imposed a penalty of ₹1,337.76 crore on Google for abusing its dominant position in multiple markets in the Android mobile device ecosystem.

Besides, the fair trade regulator has directed the internet major to cease and desist from unfair business practices.

In a release, the Competition Commission of India (CCI) said it has also directed Google to modify its conduct within a defined timeline.

In April 2019, the regulator ordered a detailed probe in the matter following complaints by consumers of Android-based smartphones in the country. Android is an open-source, mobile operating system installed by Original Equipment Manufacturers (OEMs) of smartphones and tablets.

The allegations of unfair business practices pertained to two agreements —Mobile Application Distribution Agreement (MADA) and Anti Fragmentation Agreement (AFA)—which were entered into by the OEMs of Android OS with Google.

In the release, the regulator said it has imposed a penalty of ₹1,337.76 crore on Google for abusing its dominant position in multiple markets in the Android mobile device ecosystem apart from issuing the cease and desist order.

As per the release, CCI said that mandatory pre-installation of entire Google Mobile Suite (GMS) under MADA, with no option to un-install the same, and their prominent placement amounts to imposition of unfair condition on the device manufacturers and thereby contravenes competition law.