CCI Antitrust Order Could Derail Android Growth In India: Google To SC

SUMMARY

CCI ruling entails introducing new agreements and changing existing arrangements with more than 1,100 OEMs and thousands of app developers: Google

Google tells SC that no other jurisdiction had ‘ever asked for such far-reaching changes based on similar conduct’

Earlier this month, NCLAT refused to grant interim relief to Google and directed the company to deposit 10% of the INR 1,377 Cr penalty levied by the CCI

Tech major Google has reportedly said that the Competition Commission of India (CCI’s) recent antitrust order risks stalling the growth of its Android ecosystem in the country.

The disclosures were part of the court filings made by Google before the Supreme Court and seen by Reuters.

Describing the far-reaching effects of the Competition Commission of India’s (CCI) recent antitrust order, tech major Google said the ruling entails introducing new licence agreements and changing its existing arrangements with more than 1,100 device manufacturers and thousands of app developers.

“Tremendous advancement in growth of an ecosystem of device manufacturers, app developers and users is at the verge of coming to a halt because of the remedial directions,” said the court documents.

In its plea, the tech major also said that it would be required to make major changes to its Android operating system, which has been in place for the last 14-15 years. The tech major further added that no other jurisdiction had ‘ever asked for such far-reaching changes based on similar conduct.’

It is pertinent to note that the deadline for Google to implement the changes recommended by the CCI report expires on January 19.

The submissions were part of the legal challenge mounted by Google in the Apex Court against the recent NCLAT order that refused to grant any interim relief to the tech major in the Android antitrust case. Siding with the competition watchdog, the NCLAT had also directed the US-based big tech player to deposit 10% of the total INR 1,337 Cr fine levied by the CCI.

Google has been the subject of a slew of antitrust investigations by the competition watchdog. After a three-year long probe, the Commission, in two separate orders, said that the tech major was abusing its market dominance in the Android devices market and with regards to its Play Store policies,

While a fine of INR 1,337.7 Cr levied on Google in the Android devices case, an additional INR 936 Cr penalty was imposed on Google for its lop-sided Play Store policies.

The sabre-rattling has so far seen Google file a raft of legal manoeuvres to appeal the CCI order. Not just this, the tech major has also accused the competition commission of plagiarising parts of a similar European Commission order on market dominance.

On the other hand, authorities have claimed that the tech major deliberately abused its dominance in the Android devices market to curb innovation and deny market access to competitors.

A verdict in favour of the CCI could mean sweeping changes to Google’s operations in India and could set a global precedent that could be followed by other nations. It is this scenario that Google aims to avoid with the legal litigation seeking quashing of the CCI order.

Android continues to be the de-facto leader in the operating system market in India, accounting for 90-95% of the Indian market. Any bump in India could cost the company a fortune in revenue and much more in market strength.

As more information tickles down, it remains to be seen what the legal strategy of Google is. While the previous strategy ended in a rout at the NCLAT, it remains to be seen whether the tech major can mount an effective offence against the order.