New Delhi: Google abused the dominant position of its Android operating system in India and used its “huge financial power” to illegally injure competitors, the country’s antitrust agency found in a report of its two-year investigation by Reuters.
Alphabet Inc.’s Google has “reduced the ability and incentive of device manufacturers to develop and sell devices that run on alternative versions of Android,” according to a June report by the Indian Competition Commission’s investigative department.
The US tech giant told Reuters in a statement it looks forward to working with the CCI to show how Android has led to more competition and innovation, not less.
Google did not receive the investigation report, a person with direct knowledge of the situation told Reuters.
The IHK did not respond to a request for comments on the report. Senior CCI members will review the report and give Google one more chance to defend themselves before issuing a final order that could include sanctions, said another person familiar with the case.
Google could appeal any order in Indian courts.
The results are the latest antitrust setback for Google in India, where it faces multiple investigations in the payment app and smart TV markets. The company has been studied in Europe, the United States, and elsewhere. This week, the South Korean antitrust agency fined Google $ 180 million for blocking customized versions of Android.
`VAGUE, INTENDED AND RANDOM`
Google submitted at least 24 responses during the investigation, defending itself and arguing that doing so does not harm competition, the report said.
Microsoft Corp, Amazon.com Inc, Apple Inc, and smartphone makers like Samsung and Xiaomi were among the 62 companies that responded to CCI questions during their Google investigation, the report said.
According to Counterpoint Research, 98% of the 520 million smartphones in India are powered by Android.
When the CCI ordered the probe in 2019, it said Google apparently used its dominance to diminish the ability of device manufacturers to opt for alternative versions of its mobile operating system and force them to pre-install Google apps.
The 750-page report finds that compulsory pre-installation of apps “imposes unfair conditions on device manufacturers,” violating Indian competition law, while the company used the position of its Play Store app store to protect its dominance.
The Play Store guidelines are “one-sided, ambiguous, vague, biased and arbitrary”, while Android has “enjoyed its dominant position” since 2011 in licensable operating systems for smartphones and tablets, according to the report.
The investigation sparked in 2019 after two Indian junior antitrust research workers and a law student filed a complaint, Reuters reported. Also read: Infosys, TCS, Wipro recruitment: IT companies offer up to 120% increase, membership benefits and more
India remains an important growth market for Google. Last year, the company said it would spend $ 10 billion in the country over five to seven years using equity stakes and ties, its biggest commitment to a major growth market. Also read: Homegrown SpaceX in the making: ISRO provides facilities and know-how for 2 space technology startups to test rockets
