InvestorQ : Why has the CCI imposed a Rs1,300 crore penalty on Google?
indhumathi Sayani made post

Why has the CCI imposed a Rs1,300 crore penalty on Google?

1 month ago

The Competition Commission of India (CCI) imposed a penalty of Rs1,338 crore on Google. The penalty imposition pertains to the misuse of its dominant near-monopoly power in Android operating system for mobile phones. Competition investigations against Google are also on in Europe where Google faces billions of dollars in fines for misusing its monopoly position. Google allegedly forced OEMs to pre-install Google apps. CCI has instructed Google to immediately desist from forcing OEMs of smart devices to pre-install its apps. Google is precluded from offering incentives to OEMs just to ensure exclusivity of Google search.

One area of contention is monopolising Google Play Store. Google has been asked to permit developers of other apps to distribute their apps through the Play Store. The existing reach of Google in the search engine, maps and in the Android operating system gives it some huge advantages, but that cannot be used to kill competition. CCI also objected to making its various revenue streams inter-related and cross selling its own products. However, Google holds the view that the customer is a franchise that was created by Google. As per the order, Google must pay Rs1,338 crore and desist from targeting specific groups.