The Competition Commission of India (CCI) reprimanded Google on October 26 for misusing the top position. It disagreed with some of the play shop rules. Google has assessed an Rs. 2274 crore fine by CCI. Google now intends to refute the accusations.
What is the Competition Commission of India/CCI?
The Competition Commission controls and keeps an eye on market competition. It supports an eye on how fair and healthy the competition is. It comes after the 2002 Competition Act. According to the statute, consumers’ rights must be upheld through reasonable, honest, and uninhibited competition. A merger between two of the largest markets in a given industry requires CCI approval.
Why was Google charged with the fine?
Naval Chopra and Yaman Verma, partners of Shardul Amarchand Mangaldas, represented the confidential informant who made the allegation that sparked this investigation. The CCI frequently urged Google to make it possible for mobile app developers to use third-party payment methods on its app store. It also used the Android mobile operating system (OS) to profit from its dominant position in numerous markets. It received several notices and a window of time starting three months after the complaint was filed. Even after this, Google continued to charge the only dominant behemoth Rs. 1337.76 crores even though the desired modifications to the way things were done or any indication of policy amendments were not made.
Google had inflated itself with the MADA security. According to CCI, no other company that competed with it could compete at the top level. It also discusses how monotonicity is significantly hampered by network effects and status quo bias. Some of these contracts required a thorough review, leaving customers with no choice.
Google’s take on the incidence.
After receiving two lashes in the space of a week, Google officials eventually announced to the public that they are “reviewing the CCI decision to assess next steps.”
It also attempted to persuade people of the positive effects its policies had on the development of the Indian economy and the advancement of technology through digital transformation, which had increased security and flexibility.
In addition, it would be interesting to know whether companies chose the Google Play pilot’s alternative billing mechanism and whether the company would impose the cost differently.
The dissolution of independent digital businesses, in their view, will safeguard consumers by preserving their freedom of choice, therefore some of the smaller industries have supported the entire process.
Google’s appeals against the orders
It plans to file a complaint in the National Company Law Appellate Tribunal. According to sources familiar with the process, the corporation has highlighted three grounds on which it believes the antitrust regulator’s verdict is flawed.
- The competition statute wasn’t actually broken, but the fine is nevertheless justified because of the fraudulent intentions.
- Google asserts that because Android is a patent-protected product, it is entirely within its rights to change the security barrier as necessary to meet demands.
- It is difficult to determine whether consumers are genuinely dissatisfied with the practice.
A US business as large and accessible as Google must take the Indian market very seriously. The corporation should maintain a strong relationship with the Indian government to benefit itself. Let us wait for the upcoming news on the matters till then.