CCI Cites abusing its dominant position w.r.t. Play Store regulations
Google was fined INR 936.44 crore by the Competition Commission of India (CCI) for "abusing its dominant position with respect to its Play Store regulations." The internet giant has now been hit with a similar penalty twice in a week. Additionally, the CCI issued a cease-and-desist order, requiring Google to change its behaviour within three months. On October 20, the antitrust watchdog fined Google 1,337.76 crore for abusing its dominant position in a number of markets within the Android mobile ecosystem. The regulator noted that Google's control over Play Store, the key gateway connecting app developers and users, gives it the power to impose terms on app developers and compel them to use its own payment system. The largest app store linking app developers and users on the Android ecosystem is Play Store. The anti-trust body has imposed a total fine of almost Rs 2,000 crore and issued a number of directives that may have an effect on Google's operations.
As payment for pre-installing Google apps, the device manufacturers receive a portion of Google's search revenue from their products. This lowers the cost for gadget makers while also enabling Google to grow its user base. Instead of the device makers themselves, the lawsuit was brought by three informants who identified themselves as "consumers of Android cell phones." Given that customers could choose between using Apple's iOS or Google's Android devices, Google claimed that it was not the market leader. The CCI made a distinction between open-source Android and closed-source, non-licensable iOS, nonetheless. The vertically integrated smart device ecosystem that places a premium on the sale of high-end smart devices with cutting-edge software is the basis of Apple's business. Google's business, on the other hand, is discovered to be driven by the ultimate goal of expanding users on its platforms so that people use its revenue-generating service, namely internet search, which has an immediate impact on Google's ability to sell online advertising services.
The regulation of the Google Play store, which mandates that app developers only use Google Play's Billing System (GPBS) for all consumer billings, is at the heart of the dispute. This system must be utilised for client in-app purchases as well as payments received from the apps. It is forbidden for any app developer to list their software on the Google Play store without using GPBS. The regulation of the Google Play store, which mandates that app developers only use Google Play's Billing System (GPBS) for all consumer billings, is at the heart of the dispute. This system must be utilised for client in-app purchases as well as payments received from the apps. It is forbidden for any app developer to list their software on the Google Play store without using GPBS.
The Competition Commission recently fined online travel agencies MakeMyTrip and Goibibo as well as hospitality services provider OYO for engaging in unfair commercial practices. The action against Google comes shortly after those actions. In reality, the CCI has recently encountered a number of cases involving digital markets and new-age businesses, including, but not limited to, online marketplace platforms, app stores, and payment gateways. In light of this, the regulator was always enhancing its toolkit to handle the problems posed by digital markets. For its future unit on digital markets and data, the CCI intended to hire data scientists and algorithm specialists.
This most recent loss for Google comes just one month after the General Court of the European Court of Justice confirmed the EU executive commission's 2018 decision to penalise the internet giant, although with a 4.34 billion euro reduction to a 4.125 billion euro fine. The most recent EU fine is just one of many potential antitrust fines totaling more than 8 billion euros that Google may receive in Europe. As of September 14, Google still had the choice to appeal the most recent case to the EU Court of Justice, the highest court in the union.
Write a public review