CCI Ruling: Google To Make Changes To Android Policy, Allow User Choice Billing For Apps

Google India on Wednesday (January 25) announced sweeping changes to its Android and Play Store policies to comply with the Competition Commission of India’s (CCI’s) rulings. 

The development comes nearly a week after the Supreme Court refused to intervene in the high-profile antitrust case involving Google. 

“… we are making some changes as required by the CCI’s directives. Implementation of these changes across the ecosystem will be a complex process and will require significant work at our end and, in many cases, significant efforts from partners, original equipment manufacturers (OEMs) and developers,” said Google in a blog. 

Overall, Google will make four key changes with regards to its Android ecosystem to comply with the antitrust guidelines:

• OEMs will have the choice to licence individual Google apps for pre-installation on their devices
• Users will now have the option to choose their default search engine while setting up the new device
• Google will also introduce changes to the Android compatibility requirements for partners to build forked variants
• User choice billing will be available to all apps and games beginning February 2023

With these changes, Google is looking to address the issues flagged by the CCI in its two orders against the tech giant pertaining to Android devices market and its Play Store policies. 

The changes will likely be reflected in the form of updated Mobile App Distribution Agreement (MADA) that will be implemented with regards to mobile device brands and OEMs. 

However, Google also said that it would continue its appeals against certain aspects of the CCI orders. “We continue to respectfully appeal certain aspects of the CCI’s decisions and will champion our core principles of openness, expanding user choice, providing transparency and maintaining safety and security that have served the interests of the larger ecosystem,” it said.

In the statement, Google also said that it has already begun making changes and highlighted the recent changes to the Android installation flow and auto-updating capability for sideloaded apps and app stores. For such side-loaded apps, which are downloaded from third-party platforms, the tech major said that it will ensure that users are made to understand the potential security risks while using such services. 

Besides, the tech major also said that it will expand its online resources to provide more detail on services provided by Google Play and fees applicable on the app marketplace. While Google has allowed user choice billing, the issue of high commissions charged on app developers appears to have gone unheeded with Google. 

Reacting to the development, a MapmyIndia spokesperson said, “Google’s anti-competitive practices have complicatedly intertwined all stakeholders such that Google has an extremely strong vice grip on the digital ecosystem. All 10 points done collectively and completely, will have an effect of loosening their vice grip. Google is trying to show that they are making changes – but fact is these are piece meal, and also being done in the way Google wants – and the outcome of this will not lead to on-ground impact of enhancing competition. In Europe also Google has been following this play book of making cosmetic changes.”

Earlier on Tuesday, it was reported that Google had begun reworking its terms of conditions signed with OEMs and the tech major would place the new licensing agreement before the CCI for its endorsement before finalising it. 

Last year, the CCI imposed a cumulative penalty of INR 2,273.76 Cr on Google in two separate anti-trust orders. While one case related to abuse of dominance in the Android devices market (INR 1,337.76 Cr), the second penalty (INR 936 Cr) pertained to its Play Store policies.

In its Android order, the CCI directed Google to ensure that the licensing of Android ought not be linked with the requirement of ‘pre-installing’ Google apps such as YouTube, Chrome, among others. It also ordered the company to ensure that provisions are in place to allow uninstalling of its apps by Android phone users in India.

After the CCI order, Google approached the National Company Law Appellate Tribunal (NCLAT) to challenge the CCI’s Android order and sought quashing of the penalties. The tribunal also shot down the appeal and then the tech major approached the Supreme Court to intervene in the matter.

Earlier this month, the Apex Court also refused to grant any interim relief to Google and reaffirmed the NCLAT order. This, in essence, forced the company to sit down and rework its arrangement with the smartphone manufacturers to comply with the norms.