The Supreme Court denied Google's request on Thursday to block an antitrust order that requires it to change how it sells its Android platform, dealing the American company a significant setback in a crucial growth market.
Google, which is owned by Alphabet Inc., was penalised $161 million by the Competition Commission of India (CCI) for abusing its dominant role in Android, the operating system used by 97% of Indian smartphones, and was also asked to modify the limitations placed on smartphone manufacturers with regard to pre-installing apps.
Google argued against the rule before the Supreme Court, warning that it would harm customers, and corporate and slow the expansion of the Android ecosystem.
In spite of Google's repeated requests, a three-judge bench of the Supreme Court, which included India's chief justice, decided not to overturn the decision and instead delayed the CCI's directives' implementation date from January 19 to January 26 by one week.
Chief Justice D.Y. Chandrachud stated, "We are not inclined to interfere." Chandrachud said to Google during the hearing, "Look at the kind of authority which you wield in terms of dominance."
Google's challenge must be decided by March 31 per the order from India's top court to a lower tribunal, which is currently hearing the case. Google licences its Android operating system to smartphone manufacturers, but detractors claim that it enforces anti-competitive restrictions like the requirement to pre-install Google's own apps. These agreements, according to the company, help to keep Android free.
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How it can affect Google's business in India?
According to other attorneys familiar with the decision, the Supreme Court's decision complicates Google's business practises in India because the company may be required to modify its contracts with smartphone makers and other device manufacturers in the coming days.
Google's licencing of its Play Store "shall not be linked with the requirement of pre-installing" Google search services, the Chrome browser, YouTube, or any other Google applications, according to the CCI.
Additionally, it directed Google to allow Android phone users in India to uninstall their apps. Currently, Android phones that come pre-installed with apps like Google Maps or YouTube cannot have those apps removed.
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Google has expressed concern over India's decision because it is perceived as being broader than the European Commission's 2018 landmark decision regarding the imposition of what they called unlawful restrictions on manufacturers of Android mobile devices. In that case, Google has contested the record-breaking $4.3 billion fine.
In its India filings, Google also states that "no other jurisdiction has ever asked for such far-reaching changes."
Additionally, Google claimed that CCI's investigation unit "copied" extensively from a European Commission decision, implementing evidence from Europe that was not analysed in India" in court filings, as per Reuters.
Government attorney N. Venkataraman testified in the top court on behalf of the CCI, saying, "We have not cut, copy, and paste."
(With inputs from Reuters)
