The Indian authorities have accused Google of abusing its dominant position by using Android devices in the country and have decided to impose a hefty fine on the company. The competition regulator of India imposed a fine of Rs 1,337 crore on Alphabet Inc’s Google on Thursday.
The Competition Commission of India decided to fine Google and announced the same via Twitter. The CCI wrote on social media that it decided to fine the tech company for "abusing dominant position in multiple markets in the Android mobile device ecosystem."
Besides, the fair trade regulator has directed the internet major to cease and desist from unfair business practices. The CCI has also instructed Google to modify its conduct within a defined timeline.
Why has India decided to fine Google?
A detailed probe was ordered by the CCI into the operations of Google in April 2019, after several complaints were lodged by the consumers of Android-based smartphones in the country, alleging unfair business practices by the tech company.
Android is an open-source, mobile operating system installed by Original Equipment Manufacturers (OEMs) of smartphones and tablets. It was alleged that Google was indulging in unfair business practices pertaining to two agreements - The Mobile Application Distribution Agreement (MADA) and Anti Fragmentation Agreement (AFA).
In its official release, the CCI said that it has imposed a penalty of Rs 1,337.76 crore on Google for abusing its dominant position in multiple markets in the Android mobile device ecosystem apart from issuing the cease and desist order.
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The mandatory pre-installation of the Google Mobile Suite (GMS) into Android mobile phones, with no option to uninstall the same, has been termed as “unfair” and an abuse of their position in the market.
After issuing the fine, CCI said, “These obligations are also found to be in the nature of supplementary obligations imposed by Google on OEMs and thus, in contravention of Section 4(2)(d) of the Act.”
According to the regulatory body, Google has leveraged its dominant position in the app store market for Android OS to protect its position in online general search which violates the competition law.
(With PTI inputs)
READ | CCI imposes Rs 1,338 crore fine on Google for 'abusing its dominant position in Indian Market'
