NEW DELHI: The Competition Commission of India has imposed a fine of Rs 1,337.76 crore on tech giant Google for ‘abusing its dominant position’ in multiple markets in the Android mobile device ecosystem.
The fair trade regulator has directed the internet major to cease and desist from unfair business practices and modify its conduct within a defined timeline. The penalty translates to 10 pc of Google’s average of relevant turnover for the last three preceding financial years.
The order on Google will have farreaching implications, as it not only imposes a penalty but also mandates Google to stop practices that suppress competitive Indian apps. The Indian regulator is not just addressing the tech company’s discriminatory practices on Play Store, but also wants to replace Google’s monopolistic set-up for its operating system.
Welcoming the CCI’s intervention, Indian developers have noted that Google has unfairly leveraged its market dominance to discriminate against developers in its Play store billing policy, charging high commissions and discriminating against its competitors.
“The CCI judgment needs to be implemented strongly and quickly without loopholes to prevent more damage to India as a country and Indian consumers,” they said. Google, however, described the CCI’s decision as “a major setback for Indian consumers and businesses,” Contending that it would raise the cost of mobile devices, it said it would review the decision.