Google, a subsidiary of Alphabet Inc., was fined $161.95 million and told to alter its strategy on the Android platform by India's competition authority.
The US tech company is being accused of antitrust transgressions, and India is putting more restrictions on the tech industry.
On Thursday, the Competition Commission of India (CCI) ruled that Google used its monopoly in sectors including online search and the Android app market to safeguard the prominence of its Chrome web browser and YouTube video hosting service.
Aside from Google fine, the CCI also prohibited Google from some revenue-sharing arrangements with smartphone makers, adding that such methods assisted Google in achieving exclusivity for its search services to the utter exclusion of competitors.
According to the Commission, Google is using its "dominant" position to drive out rivals in the fields of search, app stores, online browsers, and video services.
Chrome and YouTube are two of the many Google apps that have become expected on phones with the Play Store. Other options, like Firefox and Vimeo, are not included, but you can always add them.
While the Android Open Source Project (AOSP) offers greater customization options, it locks brands out of Google's app distribution platform, the Play Store.
Multiple Violations
In a statement, the CCI noted that markets must be allowed to "compete on merits, and the onus is on the dominant companies (in the current case, Google) that their behavior does not impact this competition on merits," as per Al Jazeera.
The search engine giant Google has been silent over the ruling. When approached for a response, a Google India official said the company had "yet to receive the order," CNN Business reported.
Google India is also being investigated by India's competition commission for its business practices in the smart TV industry and its in-app payment system.
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Why Is India a Crucial Market for US Tech Companies?
India is an important market for American technology companies like Google, which has been investing heavily in the Asian country.
There are already 750 million internet users in the world's second most populous country, with millions more anticipated to join soon. Additionally, unlike its more populous neighbor China, India has welcomed significant investment from US digital giants.
American tech companies Facebook, Google, Amazon, Netflix, and other companies have already made billion-dollar investments in expanding their operations in India.
In 2020, Google stated it was going to invest $10 billion in India as part of efforts to make the internet "affordable and beneficial" for a billion people.
Google made roughly $257.6 billion in sales worldwide in 2017, so the punishment is negligible in comparison. But the ruling, which was made after South Korea, the European Union, and other groups asked for similar changes, may force it to make crucial modifications to its agreements with Android manufacturers.
India is home to over 606.6 million smartphone users, making it the world's second-biggest smartphone market. A forced exit would dramatically affect Google's economical line, not to mention its prominence in the mobile market.
Engadget reported that two junior Indian antitrust researchers and a law student complained about Android in 2019. Google was fined $5 billion in Europe for forcing manufacturers to pre-install its apps on Android smartphones. The Indian case is similar.
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