Growth of Google’s Android ecosystem is on the brink of stalling in India due to an antitrust order that asks the company to change how it markets the platform, the US company has said in a Supreme Court challenge.
The Competition Commission of India (CCI) in October fine Google $161 million (approx. Rs. 1,300 crore) for exploiting its dominant position in Android, which powers 97% of smartphones in India, and ask it to change restrictions impose on smartphone makers related to pre-installing apps.
Google has so far said the CCI decision will force it to change its long-standing business model, but its Indian Supreme Court filing for the first time quantifies the impact and details the changes the company will need to make.
Google will need to modify its existing contracts, introduce new license agreements and alter its existing arrangements with more than 1,100 device manufacturers and thousands of app developers, it says.
As per Google’s filing, which is not public :
“Tremendous advancement in growth of an ecosystem of device manufacturers, app developers and users is at the verge of coming to a halt because of the remedial directions,”.
“Google will be require to make far-reaching changes to the Android mobile platform which has been in place for the last 14-15 years.”
But Google spokesperson decline to comment.
Google has concern about the Indian decision as the remedies order are seen as more sweeping than the European Commission’s landmark 2018 ruling for imposing unlawful restrictions on Android mobile device makers.
Google has challenge the record $4.3 billion (approx. Rs. 35,000 crore) fine in that case.
Google licenses its Android system to smartphone makers, but critics say it imposes restrictions like mandatory pre-installation of its own apps that are anti-competitive.
The Google argues such agreements help keep Android free.
The CCI in October order Google to not prohibit uninstalling of its apps by Android phone users in India, currently, one can’t delete apps such as Google Maps or YouTube from their Android phones when they come pre-install.
The CCI also said Google’s licensing of its Play Store “shall not be link with the requirement of pre-installing” Google search services, the Chrome browser, YouTube or any other Google applications.
Google said in its court submissions :
“No other jurisdiction has ever ask for such far-reaching changes based on similar conduct,”.
Google has ask the Supreme Court to put on hold the remedial measures order by the CCI, which start from 19th January 2023, court documents dated 7th January 2023 show.
The case will likely be heard in the coming days.
Google has also alleged in its legal filings that the CCI’s investigation unit copied parts of a European 2018 ruling against the US firm, as per report.
The CCI and the European Commission have not respond to those allegations.
