The Competition Commission of India (CCI) fined Google for Rs. 936.44 crore on Tuesday, bringing the total penalty to 2,274 core, for abusing its dominant position regarding Play Store policy. The CCI also ordered the tech giant to stop engaging in unfair business practises. This was the second time in less than a week that Google had received a fine.
The US tech company was found guilty of exploiting its dominant market position to promote its payments app and in-app payment system during yet another antitrust investigation this month, according to the CCI on Tuesday.
In respect to its Play Store policy, the CCI tweeted that it has punished Google for engaging in anti-competitive behaviour.
Case Nos. 07 of 2020, 14 of 2021 and 35 of 2021
CCI imposes a monetary penalty of ₹ 936.44 Crore on Google for anti-competitive practices in relation to its Play Store policies.
Read the full order here: https://t.co/GDR820ffYg
Press release: https://t.co/7HEPJeHVK3#Antitrust pic.twitter.com/TbTa6vbCXl— CCI (@CCI_India) October 25, 2022
This comes after the CCI penalised Google 1,337.76 crore on Thursday of last week for engaging in anti-competitive behaviour linked to Android.
The presence of an operating system (OS) on a smart device directly affects the accessibility of app stores, which are necessary for developers to distribute their programmes to end users.
The success of Google’s Android OS can be attributed to its understanding of the market dynamics for mobile operating systems available for licencing in India.
The CCI claimed that Google’s Play Store, which enables its owners to make money from the apps released to the market, is the main software distribution route for the Android mobile ecosystem.
The Google Play Store policies state that in order to collect payments for apps distributed or sold through the Google Play Store as well as for some in-app purchases, app developers must only use Google Play’s Billing System (GPBS).
The anti-steering clauses prohibit app developers from including language that encourages users to purchase the digital good outside of the app or from including a direct link within an app to a website that accepts an alternative payment method.
The Indian watchdog’s analysis led them to the conclusion that since Google controlled the app stores and licensable OS for smart mobile devices in India, requiring app developers to utilise the GPBS was unfair and arbitrary.
If the app developers did not follow Google’s policy of using GPBS and were not permitted to advertise their apps on the Play Store, which the CCI claimed lacks any real economic reason to require GPBS usage to access the Play Store for premium apps and in-app purchases, the vast pool of potential customers who use Android would be lost.
The watchdog stated that the app developers no longer have the opportunity to select a preferred payment processor from the open market.
Google has not yet responded to the most recent punishment.
Following last week’s CCI penalties, Google stated on Friday that the sanction was “a huge setback for Indian consumers and businesses” and that the company will analyse the ruling to determine the appropriate course of action.
