Toni Dimaano Tech 10.21.2022 05:Oct AM EDT

India Fines Google $161.9 Million for Suppressing Competition

The Competition Commission of India has fined Google for $161.9 million for supposedly imposing unfair conditions on its competitors.

Google is accused of executing anti-competitive practices on Android mobile phones by requiring them to preinstall Google as part of their agreement, Engagdet writes.

Google Squeezes Out Competitors

According to the Commission, Google has discouraged other companies from developing and modifying Android variants of projects that allow them to rely less on Google's services.

They add that Google has placed itself in a dominant position where it can easily rise above competitors in search, app stores, browsers, and video services, especially with Chrome and YouTube.

According to India Today, the Commission examined Google's licensing practice on Android mobile operating systems and various proprietary mobile applications by Google.

Because of this, the regulatory body has called on a cease and desist order for Google that bars the company from requiring mobile devices to have preinstalled apps in them.

Google has been barred from denying access to the Play Services framework, having anti-infringement clauses specific Android forks, or offering incentive for exclusive search deals.

Furthermore, the Competition Commission of India also tells the company that they must allow third-party app stores to roll out their products on the Play Store.

According to Tech Crunch, this move may curtail Google's steady growth in the market should they comply with the measures imposed by the Commission, changing their business strategies.

In connection, Google has been slapped with a $161.9 million dollar fine, which should be an insignificant loss for the company whose revenue amounts to $257.6 billion in 2021.

Engadget reports that Google has declined to give a statement regarding the issue until they receive the official order from the Competition Commission of India.

The Google Investigation Began Years Ago

According to Indian Express, Google is facing several antitrust cases in India where the Commission is looking into the company's in-app payments system and smart TV market.

Insider Retail Asia writes that the probe against the company began in 2019 when a complaint was filed by two antitrust research associates and a law school student.

This investigation has subjected other multinational companies such as Apple, Microsoft, Amazon, Mozilla, and Samsung to probes regarding suspicious business activities, India Times reports.

In response, Google has countered the lawsuit and, in turn, sued the regulator in court over an alleged breach of confidence that harms the company and its partners.

Additionally, the European Union has also sued Google for $4.3 million for using the company's dominance to hinder their competition's growth.

India is the second smartphone market in the world, which is why Google should address the issue upfront to avoid significant damage that may affect the company.

On the other hand, Google's Android operating system powers 97% of India's smartphone industry to whom 600 million smartphone users rely on, Insider Retail Asia writes.