In just one week, the CCI slapped a fine of Rs 2,274.2 crore on Google. On 25th October, the CCI fined the company

Rs 936.44 crore for abusing its dominant market position in terms of its Play Store policies. Earlier, the watchdog

authority fined Google Rs 1,337.76 crore for abusing its position in several categories related to the Android mobile

device ecosystem.

The first was over Google’s Android mobile operating system and other proprietary mobile applications, including

the Play Store, Google Chrome and YouTube. It was held that Google’s mobile application distribution agreement

gave it significant market lead.

In the second instance, the CCI was concerned over the mandatory term of usage in Google Play Billing System for

purchase of application/in-app purchases. The CCI observed that Google Play was the primary distributional channel

for mobile applications installed by Android users.

 

- Issue cease-and-desist order directed him to modify its conduct.

- Also allow mobile app developers to use third-party payment services on their app stores, because Play Store

charged app providers a 30% commission for allowing them to use the Play Store's payment system and Google Play

in-app billing. Hence, they had no option to use alternative payment aggregators charging less commission.

 

Indian developers have benefited from the technology, security, unmatched choice and flexibility that Google

provide. By keeping costs low, our model has driven India's digital transformation and expanded access to millions

of Indians.

 

Google is reportedly planning to appeal against the two orders of CCI on three grounds. First, the fine they levied is

more “penal” than “token” Second, the CCI appears to have overlooked the patent perspective in the Android

ecosystem Third, the CCI has been through any clear evidence regarding the effect on consumers.

 

In the Android case, the CCI imposed a penalty of 10% of revenue arising/accruing in India and in Play Store ruling,

the CCI imposed a penalty of 7% of the total revenue of Google’s business operations in India. (in compliance with

Sec. 27 of the Competition Act ,2002)

 

 Other Country having such Issues?

In 2021 South Korea made it mandatory for their app stores to have alternative payment systems

 

The third case deals with the company’s Android TV operating system, and the contracts Google has with

companies in that ecosystem.The complaint was filed by antitrust lawyers Kshitiz Arya and Purushottam Anand in

May 2020, and the CCI found prima facie evidence of violation of India’s antitrust regulations in June last year. It

ordered the DG to further investigate the matter and present a report on it.