Tech

Google says it’s planning to legally challenge India’s antitrust attack on Android


Google is planning a legal challenge to block a ruling by India’s antitrust watchdog to change its approach to its Android operating system, concerned it will restrict how it advertises. promote the platform, sources familiar with the matter told Reuters.

The Alphabet The unit has been fined $275 million (nearly Rs 2,300) in two Indian antitrust decisions since last week – one for its in-app commission charging policy and the other for abusing its position in the market for Android operating system.

Judgments are made as Google faces increased antitrust scrutiny around the world. Last month, it suffered a major setback when a European court upheld a 2018 ruling that said it largely confirmed the decision that the company imposed “unlawful restrictions on manufacturers”. Android mobile devices.” Google plans to appeal the decision, where it faces a record fine of $4.1 billion (nearly Rs 33,800).

The Competition Commission of India(CCI) Android’s ruling, although involving a fine of less than $162 million (nearly Rs 1,300), has Google worried as it seeks broader remedial measures, three Sources familiar with the company’s thinking said.

One of the sources said that Google is concerned that the CCI decision could increase regulatory pressure in other jurisdictions and that a legal appeal to block the implementation of the antitrust directive is being planned. within a few weeks.

Google declined to comment on its regulatory plans, reiterating a statement from last week that the CCI order was “a major setback for Indian consumers and businesses, opening up serious security risks.” …and drive up the cost of mobile devices for Indians.”

Abhishek Manu Singhvi, a lead advisor to Google in his arguments before the CCI, tweeted on Wednesday that the “inherent defects and patents” under the order make an inevitable and likely challenge. successful.

Google has faced criticism globally that it licenses its Android operating system to smartphone players but signs restrictive agreements that are anti-competitive. The American company claims that Android has created more choices for people, and such deals help keep the operating system free.

For example, in the case of the European Commission, its antitrust body in 2018 ruled that Google abused its dominant position by forcing manufacturers to pre-install two of their apps – Google Search and it Chrome browser browser – along with Google Play Store on Android devices.

One of the sources said that India’s order is involved in going further and imposing restrictions on a wide range of Google apps – “Play Store licensing … will not be granted. associated with pre-installation requirements” of Google search services, Chrome Browser, YouTube, Google map, Gmail or any other Google app,” CCI noted.

Faisal Kawoosa, founder of Indian research firm Techarc, said such preset restrictions could force Google to think of different revenue models, such as charging royalties to manufacturers. exporting devices for Android in India, as they did in Europe.

“CCI directives are at the heart of Google’s revenue model for Android — which is based on a volume game where the larger user base, the more ways to monetize,” said Kawoosa. .

In Europe, 75% of 550 million smartphone runs on Android, compared with 97% of the 600 million devices in India, Counterpoint Research estimates.

Google is also concerned that the CCI has ordered it not to impose any restrictions in India on so-called “sideloading”, an activity of downloading apps without using the app store and allowing other app stores are available in their Play Store, two of the sources said.

However, these are expected to raise the prospect of local competitors, such as Indus App Bazaar, which offers thousands of apps in English and local languages. Indus said this week “will bring more choice and innovation to Indian developers”.

© Thomson Reuters 2022


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