Indian Competition Commission Accuses Google Of Harming Its Competitors, Here's Why

JAKARTA - The antitrust authority in India, accused Google of abusing its dominant position in its Android operating system by using its huge money power to illegally harm its competitors. The report comes after two years of investigation.

"Google Alphabet Inc has reduced the ability and incentives of device manufacturers to develop and sell devices that run on alternative versions of Android," said a report by the Competition Commission of India (CCI) investigative unit in June as quoted by Reuters.

The US tech giant told Reuters in a statement it looked forward to working with CCI to "show how Android has led to more competition and innovation, not the other way around."

"Google has not received the investigation report," a person with direct knowledge of the situation told Reuters.

CCI did not respond to a request for comment on the report. Senior CCI members will review the report and give Google another chance to defend itself, before issuing a final order, which could include penalties, according to other CCI sources familiar with the case. Google can appeal any order in Indian courts.

The CCI findings are the latest antitrust setback for Google in India, where they are also facing several investigations in the payment app and smart television markets. The company has also been sued in Europe, the United States and elsewhere over the same issue.

This week, South Korea's antitrust regulator fined Google $180 million for blocking a customized version of Android.

Google submitted at least 24 responses during the investigation, defending itself and arguing that it did not harm competition.

Microsoft Corp, Amazon.com Inc, Apple Inc, as well as smartphone makers such as Samsung and Xiaomi, were among the 62 entities that responded to CCI's inquiries during Google's investigation, the report said.

Android supports 98% of India's 520 million smartphones, according to Counterpoint Research.

When the CCI ordered an investigation in 2019, it said Google appeared to have taken advantage of its dominance to reduce device makers' ability to choose alternative versions of its mobile operating system and force them to install Google apps first.

The 750-page report found that mandatory pre-installation of apps "equals to the imposition of unfair conditions on device manufacturers" in violation of India's competition laws. While Google itself is considered to take advantage of the position of the Play Store application store to protect its dominance.

The Play Store's policies are considered "one-sided, ambiguous, vague, biased and arbitrary", while Android has "enjoyed its dominant position" in the licensing operating system for smartphones and tablets since 2011, the report said.

The investigation was sparked in 2019 after two junior Indian antitrust research associates and a law student filed a complaint, Reuters reported. India remains a key growth market for Google.