Google Settles Smart TV Antitrust Case By Paying INR 20 Cr

Tech giant Google, which has been under regulatory scrutiny in India in a number of cases, has agreed to settle a smart TV Antitrust case with the Competition Commission of India (CCI) by paying a settlement amount of INR 20.24 Cr.

Besides the settlement amount, the company has also agreed to provide a standalone licence for Play Store and Play Services for Android smart TVs in India, thereby removing the requirement to bundle these services or impose default placement conditions. 

Further, Google has also waived off its Android Compatibility Commitments (ACC), which was part of its Television App Distribution Agreement (TADA). “… by waiving the need for a valid ACC for devices shipped into India that do not include Google apps, OEMs can now sell and develop incompatible Android devices without violating the TADA,” the CCI said. 

What Was The Case About? 

The matter traces its origins to complaints filed by antitrust lawyers Kshitiz Arya and Purushottam Anand in 2020, alleging that Google misused its dominant position in the Android TV market, forcing smart TV manufacturers to pre-install specific Google apps and restrict the use of competing operating systems. 

Besides Google, the duo also levelled similar allegations on Xiaomi and TCL India.

The complainants alleged that Google made original equipment manufacturers (OEMs) sign the trade agreements, TADA and ACC, in violation of Section 3(4) and Section 4 of the Indian Competitions Act, 2022. 

For context, while Section 3(4) addresses vertical agreements that can cause an appreciable adverse effect on competition within India, Section 4 of the Act focusses on abuse of dominant position by an enterprise or group, prohibiting practices that distort competition. 

The two agreements imposed several restrictions on OEMs, including bundling Google’s app store with the Android OS-operated smart TVs. Further, the ACC agreement also allegedly prevented OEMs from manufacturing, distributing, or selling devices running on a competing forked Android OS, thereby denying market access to competitors. 

During its investigation, the CCI found that the US-based company misused its dominant position in the licensable smart TV OS market and app stores for smart TV markets in India.

Besides, the competition watchdog also found Google abusing its dominant position by tying its YouTube app with the Play Store. However, the CCI did not find Google in breach of competition laws when it came to its refusal to deal with the OEMs and ‘exclusive supply’ agreements. 

“It was observed that OEMs have no discretion in signing the TADA/ACC agreements and are entirely dependent on Google’s licensable Android OS for Smart TVs due to its functionality and widespread popularity,” the CCI said.

Since forwarding its investigation report to Google on September 22, 2023, the Commission and the tech major have been on a continuous back and forth regarding how the matter should be taken forward.

Eight months after hearing from the CCI, Google submitted the following settlement terms to the commission in June last year: 

• To make available a standalone licence to the Google Play Store and the Google Play Services for compatible Android smart TV devices sold in India, called ‘New India Agreement’. 
• Eliminating TADA to have ACC for devices shipped in India. Google will be sending letters to all of its Android TV partners in India informing the waiver, along with other “existing flexibilities” allowed under the agreements.
• Google will adhere to these proposals for a period of five years.

The CCI agreed with this and also asked to pay a settlement amount of INR 20.24 Cr, which Google paid on April 8. 

While this case has been settled, Google continues to face a few other antitrust cases in the country. 

Google’s Tryst With Fair Trade Regulator In India

The following is a list of cases for which the big tech giant is under the scanner of the CCI.

• In 2022, the CCI levied penalties worth INR 2,274.2 Cr on Google in two different cases for abuse of dominant position in the Android market and anti-competitive Play Store policies. The company is fighting the cases in various courts.
• Last year, Google drew major flak from the Indian startup ecosystem over delisting of hundreds of apps like Truly Madly, STAGE, Kuku FM and QuackQuack for not meeting its billing policies. Following this, the startups approached the CCI for intervention. However, Google reinstated the apps later.
• In August 2024, the Alliance of Digital India Foundation (ADIF) filed a complaint with the CCI alleging Google’s anti-competitive practices in the Indian online advertising market. The industry body contended that Google employs practices that stifle competition and adversely affect businesses in online advertising. A similar complaint was also filed by WinZO.