Google is planning a legal challenge to block an order by India’s antitrust watchdog to change its approach to its Android operating system, fearing it could ban it. How it promotes the platform, sources with direct knowledge of the situation told JEE News.
The Alphabet unit has been fined $275 million since last week in two Indian antitrust rulings – one over its policies to charge in-app commissions and another for abusing its market position for the Android operating system.
The decisions come at a time when Google is facing antitrust scrutiny around the world. Last month, it suffered a major blow when a European court upheld a 2018 ruling, saying it largely affirmed a ruling that the company imposed “unlawful restrictions on manufacturers of Android mobile devices.” . Google plans to appeal the ruling, where it faces a record $4.1 billion fine.
The Competition Commission of India’s Android decision, despite a fine of less than $162 million, has rattled Google as it seeks broader remedies, three sources familiar with the company’s thinking said.
One of the sources said Google is concerned that the CCI’s decision could increase regulatory pressure in other jurisdictions and that a legal appeal to block implementation of the antitrust directive is being prepared within weeks. .
Google declined to comment on its legal plans, repeating last week’s statement that the CCI’s order was “a major setback for Indian consumers and businesses, posing serious security risks.” … and increasing the cost of mobile devices for Indians”.
Abhishek Manu Singhvi, Google’s lead lawyer in his arguments before the CCI, tweeted on Wednesday that “inherent and patent weaknesses” in the order make a challenge inevitable and likely to succeed.
Google has faced global criticism for licensing its Android operating system to smartphone players but signing restrictive agreements that are anti-competitive. The US firm says Android has created more choices for everyone and such contracts help keep the operating system free.
For example, in the case of the European Commission, its antitrust authority in 2018 ordered Google to allow manufacturers to pre-install two of its apps — Google Search and its Chrome browser — on Android devices alongside its Google Play Store. abused its dominant position by forcing the installation.
One of the sources said the Indian order goes further and imposes restrictions on a wider array of Google apps – “the Play Store license … will not be tied to the requirement to pre-install” Google. search services, Chrome browser, YouTube, Google Maps, Gmail or any other Google application,” the CCI noted.
Faisal Kavusa, founder of Indian research firm Techarc, said such pre-installation restrictions could force Google to think about different revenue models, such as charging device makers license fees for Android in India, as he did in Europe.
“CCI’s directives are at the heart of Google’s revenue model for Android – which relies on a volume game where user volume is high, with multiple avenues to monetize,” Kavusa said.
Counterpoint Research estimates that in Europe, 75% of the 550 million smartphones run on Android, compared to 97% of the 600 million devices in India.
Google is also concerned that the CCI has ordered it not to ban so-called “sideloading” in India, the practice of downloading apps without using the App Store, and Other app stores should allow its Play Store to be available, two of the sources said.
However, they will increase the chances of domestic competitors, such as Indus App Bazaar, which offers thousands of apps in English and local languages. Indus said this week that the order “will lead to more choice and innovation for Indian developers.”
