Google Calls CCI Penalty A ‘Setback’ For Indian Consumers

A day after the Competition Commission of India (CCI) slapped a hefty penalty on Google for abuse of dominant position in the Android devices market, the tech giant called the move a major setback for Indian consumers and businesses.

In a statement, Google said that it is currently reviewing the decision and would accordingly evaluate the next steps.

“Android has created more choice for everyone and supports thousands of successful businesses in India and around the world. The CCI’s decision is a major setback for Indian consumers and businesses, opening serious security risks for Indians who trust Android’s security features, and raising the cost of mobile devices for Indians. We will review the decision to evaluate the next steps,” said a Google spokesperson. 

On Thursday, the competition watchdog imposed a penalty of INR 1,337.76 Cr on the tech major for its anti-competitive practices in multiple domains including operating system, online video hosting, search market and app marketplaces. 

The CCI also issued a cease and desist order to Google and asked it to modify its conduct in the specified areas within a defined timeline.

While noting that Google clearly enjoyed a dominant position in all the relevant markets, the CCI also stated that its overarching presence in these areas creates significant entry barriers for its competitors.

While highlighting the ‘security risks’, the tech major was likely referring to the CCI’s ruling that Google cannot disincentivise the sale of Android fork-based devices.

Forks are standalone operating systems created out of the basic Android source code. In these new projects, a developer can tinker with the copy of the OS and create customised Android versions for themselves. 

The CCI reprimanded Google for not incentivising forks which it says allows users to remove Google search as a preferred mode of search on the phone. It noted that this contributes to Google’s dominance in the search space. 

While forks allow users to build a customised OS, it also makes them vulnerable to malicious code. An OS with a bad code and backdoor entry could put users’ data privacy at risk. 

While Google has been dealing with a raft of antitrust penalties and verdicts across the globe, this is the first of its kind rap that the tech giant has received in India. 

India is one of the largest markets for Google and any chink in the armour for the tech giant in the country could affect its ad revenues. 

With the order, the CCI has more or less addressed all antitrust cases related to Google in the country. However, Google still faces another probe that has been looking into its dominance in the news aggregation space. A loss there could see Google’s revenue sharing model tilt heavily in favour of publications.