An antitrust watchdog in India ruled that Google had abused its market position by engaging in anti-competitive practices last year. As a result of this finding, the Indian government intends to take action against Alphabet’s Google, according to a senior IT minister who spoke with Reuters.
In October, India’s antitrust agency handed Google a punishment of approximately Rs. 2,280 crores (equivalent to $275 million) for abusing its dominating position in the Android operating system market and pressuring developers to utilize its in-app payment system. The cases concerned Google misusing its strong position in the Android operating system market.
In an interview with Reuters held at the IT ministry in New Delhi, Rajeev Chandrasekhar, the federal deputy minister for information technology, said that such results are “serious” and cause “deep concern” to India’s federal government, which would take its own measures against Google.
Chandrasekhar said that action needed to be taken by the ministry. “We have given it some serious consideration. It will become clear to you in the next weeks. Without a doubt, this is not something that we are going to ignore or try to sweep under the rug.
The minister did not provide any specifics about the kinds of regulatory or policy actions that the government may take.
Chandrasekhar, who is one of the highest-ranking officials in the administration of Prime Minister Narendra Modi, said that the situation “is worrisome, not just for us, but it’s worrisome for the entire digital ecosystem in India.” Chandrasekhar is one of the highest-ranking officials in the administration of Prime Minister Narendra Modi.
In response to a request for comment on the minister’s statements, Google did not provide one. When Chandrasekhar was asked whether he had discussed the matter with Google, he responded by saying that “there is no need for any discussion.” There is a conclusion reached by a court.”
While the case of the payment is still being appealed, in March, an Indian tribunal declared in response to a legal challenge that the Competition Commission of India’s conclusions of Google’s anti-competitive behavior in the Android market was accurate. This was despite the fact that the case of the payment is still being appealed.
The minister’s remarks came as tensions are rising between Indian firms and Google, which is the context in which they were made.
After allegations from Tinder’s owner Match Group and a number of startups that a new service charge scheme Google utilizes for in-app payments infringes the competition commission’s October judgment, India’s competition watchdog has opened a fresh investigation into Google’s business practices.
Google has said in the past that the service charge is used to fund investments in the Google Play app store and the Android mobile operating system, which enables the company to provide both for free distribution.
Even though Google cautioned that “no other jurisdiction has ever asked for such far-reaching changes,” it was obliged to make significant adjustments to the way it advertises its mobile operating system in the nation as a result of the Android antitrust judgment in India.
There are around 620 million cell phones in India, and approximately 97 percent of them run on Android. The firm views India as a vital growth area.
There have been lawsuits filed against other businesses in India, including Apple and Amazon, on the grounds that they may have engaged in practices that are anti-competitive. Chandrasekhar said that the government of India was eager to take action to defend India’s digital economy.
“We don’t want it to be growth in a way that distorts consumer choice or free competition,” he added. “We don’t want it to be growth in a way that distorts consumer choice.”
“We will without a doubt be looking into what the government needs to do in order to prevent anyone, including but not limited to Google, from abusing their market power or market dominance,”
