Google Does A Volte-Face, Starts Working On Mobile App Distribution Agreement

Tech giant Google has started reworking its terms of the Mobile App Distribution Agreement (MADA) signed with mobile device brands. This move comes few days after the Supreme Court upheld the Competition Commision Of India (CCI)’s order against Google.

Before finalising the new licence agreement with mobile device OEMs, Google will place it before the CCI for its endorsement, Business Standard reported citing sources.

“We cannot make any changes in the licensing agreement with Google or we will risk cancellation. Under this agreement, the licensing of Google Play Store requires us to pre-install 5-7 Google apps, which include Google search, Gmail, Youtube, Google Maps, and Duo, amongst others,” an executive of a mobile device company said as quoted in the report.

The executive also pointed out that the placement of these apps are also decided under the licence. The apex court order coupled with the CCI’s directions, will change such rules, he added.

As per the CCI order, mobile device makers will not be compelled to pre-install a bouquet of Play Store applications and follow the placement rules. Moreover, customers will also get the choice to uninstall Google apps.

While Google has always argued that such pre-installation keeps android free of charge, many developers, manufacturers in India have opposed such norms saying it imposes restrictions and curbs competition in the market.

The CCI in its order has directed Google that the licencing of its Play Store “shall not be linked with the requirement of pre-installing” Google search services, the Chrome browser, YouTube or any other Google applications.

It also asked the US-based tech major to allow the uninstalling of its apps by Android phone users in India.

However, allowing or sideloading third party apps on the Play Store platform may pose several challenges including security issues, according to mobile device makers.

“While Google wants the responsibility to be pushed on us, we have nothing to do with it, as our relationship with a consumer ends with the selling of the phone, after which, it is limited to fulfilling warranty requirements. Why should we invest in the security and upgrades of apps?,” a senior executive of a mobile device brand said as quoted in the report.

Google has been the subject of a slew of antitrust investigations by the competition watchdog. Last year, the CCI said that the tech major was abusing its market dominance in the Android devices market after three years of probe.

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

Android continues to lead the operating system market in India, accounting for 90-95% of the Indian market.