Google has requested the Supreme Court of India to dismiss the directives issued by the Competition Commission of India (CCI) as part of its antitrust orders, accusing it of abusing the Android market.
This move is part of Google’s ongoing legal fight against the competition watchdog in one of its most crucial markets.
The Charges Against Google
In October last year, the CCI stated that Google, whose Android operating system is utilized by 97 per cent of the 600 million smartphones in India, had taken advantage of its dominant position.
Given its dominant position in the Android ecosystem and how it had allegedly taken some anti-competitive behaviour, the CCI had imposed some massive fines and issued directives that would have forced Google to change the way it operates in India.
The CCI had alleged that Google had mandated smartphone and other mobile device manufacturers to instal the Google Play Store and other Google apps as the default, and sometimes, non-removable options when installing Android.
The Directives That The CCI Had Imposed
The CCI then issued orders to Google, instructing the removal of restrictions on device makers, including those about pre-installed apps. Additionally, Google was fined $163 million, which it duly paid.
Furthermore, the CCI issued the following directives to Google:
- The licensing of Google’s Play Store, the platform through which users download mobile apps, should not be permitted with the condition that device manufacturers must pre-install Google apps like YouTube, Gmail, or the Chrome browser.
- Google should not be able to compel device makers to pre-install a specific set of apps or dictate their placement on the devices.
- Google should be restricted from entering agreements that guarantee exclusivity for its search services on smart devices.
- Google must not impose restrictions on smartphone users, preventing them from uninstalling pre-installed apps such as Google Maps, Gmail, and YouTube, which are currently non-removable on Android phones.
- Google should provide users with the option to choose their preferred search engine for all relevant services during the initial setup of a phone.
- Google should not enforce any limitations in India on the practice of “sideloading,” which involves downloading apps without utilizing Google’s app store.
- Google should allow the hosting of third-party app stores on its Play Store platform.
- Competitors and app developers should not be denied access to the programming interface of Google Play services, the underlying software system that powers Android devices. This directive aims to ensure compatibility between apps on the Play Store and third-party app stores based on Android variants, as stated by the antitrust authority.
- Google should refrain from providing incentives or imposing obligations on manufacturers to discourage them from selling smart devices that operate on Android variants.
- The CCI also directed Google not to impose restrictions on manufacturers of Android smartphones, preventing them from developing other devices such as tablets or TVs based on modified versions of Android.
A Tribunal Comes To Google’s Relief
In March this year, an Indian tribunal provided partial relief to Alphabet Inc’s unit by setting aside four out of the ten directives issued in the case.
Google was told by the tribunal, that they will now not need to allow hosting of third-party app stores inside Play Store. Google was also told that they don’t need to allow users to remove pre-installed apps such as Google Maps, Gmail and Youtube. The company can also continue imposing curbs on so-called “sideloading”, a practice of downloading apps without using an app store, which CCI had said must be discontinued.
Although the tribunal acknowledged the CCI’s findings of Google’s anti-competitive behaviour, it granted some respite to Google by annulling certain directives that required the company to modify its business model. Now, Google is seeking the Supreme Court’s intervention to dismiss the remaining directives, as confirmed by the first source familiar with the matter.
Google Goes To The Supreme Court, Again
This isn’t the first time that Google has approached the Supreme Court to get the directives quashed. Right after the CCI issued the fine and the orders to change the way Google conducts its Android and app businesses in India, Alphabet Inc approached the Supreme Court asking for the directives to be quashed.
However, the Supreme Court in January this year, refused to suspend any of the antitrust directives that were ordered last year. The Supreme Court then asked the tribunal to hear the case on merit and rule by March end.
Google has argued in its filing submitted on Monday that it has not engaged in any market position abuse and should not be held responsible for paying penalties. In response, Google confirmed its filing in a statement and expressed its anticipation for presenting its case, emphasizing how Android has benefited users and developers.
Google further explained that the Indian tribunal failed to apply the requirement of proving harm caused by anti-competitive behaviour to several of the CCI’s directives related to Android, which forms the rationale behind its latest legal challenge. This Supreme Court challenge by Google has not been previously reported.
In parallel, the CCI has also approached the Supreme Court, seeking to overturn the tribunal’s decision that granted Google partial relief.
Google has been particularly concerned about the implications of India’s Android decision, as the directives were perceived as more far-reaching compared to the ones imposed by the European Commission in its significant 2018 ruling against the operating system.
Consequently, Google has made some substantial changes to Android in India over recent months in response to these directives, including enabling device makers to license individual apps for pre-installation.
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