Union Min Ashwini Vaishnaw Calls CCI Penalties On Google The Right Move

Union Minister Ashwini Vaishnaw has backed the Competition Commission of India’s (CCI’s) decision to impose penalties on Google and has called the move a ‘good’ decision. 

He further noted that CCI had conducted due diligence before arriving at a decision. 

“The CCI has come up with such a decision after a long procedure, so I think it is good. Whatever they (CCI) are doing is right,” he was quoted as saying by The Hindu businessline.

With this, the government appears to have put its weight behind the competition watchdog as it appears set to spar with Google over the fines.

This came as CCI imposed two back-to-back penalties on the tech giant for abuse of dominance. In its first order, CCI found Google guilty of abusing its dominance in the Android devices space and fined the company INR 1,338 Cr. 

Close on the heels of that, the commission also ruled that Google Play Store had resorted to anti-competitive practices by mandating its own in-app payments system for apps listed on the app marketplace. It ordered the tech giant to pay a penalty of INR 936 Cr for flouting competition norms.

Besides, the competition watchdog has also issued a series of cease and desist orders against Google that bar it from indulging in anti-competitive practices.

Google is currently reviewing both orders and plans to evaluate the next steps to address issues arising from the contentious orders. The tech giant has gone on so forth to call the ruling a ‘setback’ for Indian consumers and businesses.

The orders have, however, brought cheer to both original equipment manufacturers (OEMs) and app developers that have been pummelled by high entry barriers and heavy commissions. Many have welcomed the move citing better market access for players operating in a near-total monopoly. 

Meanwhile, Google continues to be marred by a raft of antitrust penalties and verdicts across the globe. This is the first of its kind reprimand that the US-based tech giant has received in India. 

While Google may decide to contest the rulings, India will continue to be the tech giant’s focus. The country is one of the largest markets for Google in the world, and any snag here could mean billions of dollars in lost revenues and profits.