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Tag: CCI Google

  • Google and CCI Resolve their Antitrust Dispute Regarding Google’s Use of Smart TVs

    The Competition Commission of India (CCI) said in a statement that Google has become the first company to use the recently implemented settlement framework in India. The company has been ordered to pay INR 20 crore to settle an antitrust investigation into claims of its anti-competitive behaviour in the smart TV market.

    The ruling forces the tech giant to unbundle its Play Store and Play Services on Android TVs in the nation, marking a significant change in the regulatory environment. Google would be required to pay INR 20 crore as part of the settlement agreement after a 15% scheme-related reduction.

    What are the Outcomes of CCI’s Investigation?

    In a statement on April 21, CCI said that its investigation had concluded that Google’s agreements with the Television App Distribution Agreement (TADA) and the Android Compatibility Commitments (ACC), when executed together, allegedly imposed unfair terms.

    Hence, it further prevents television makers from using or developing Android forks, preventing the development of new apps, and requiring the pre-installation of its entire app bundle, Google TV Services.

    According to the agency, 45 parties submitted comments and concerns over Google’s settlement application. CCI added that after reviewing the settlement plan, the Commission noted that Google will grant an independent licence for the Play Store and Play Services for Android smart TVs in India. Hence, it will be done as part of the “New India Agreement”. The move will eliminate the need to set default placement criteria or bundle these services.

    EU Planning a Stringent Action Against the Tech Giant

    While CCI is settling the matter with Google, its European counterpart is allegedly considering taking action against Big Tech, if trade discussions between the EU and the US, following President Trump’s massive tariffs, fail.

    The main thrust of the accusation against Google LLC, Google India Private Limited, and two other parties was that Google abused its power by imposing restrictive agreements on original equipment manufacturers (OEMs).

    These agreements included mandatory Play Store bundling with the Android TV operating system and anti-fragmentation agreements that prohibited the use or development of competing forked Android versions.

    About CCI?

    The Indian government created the Competition Commission of India (CCI) as a statutory agency to guard against actions that hurt competition, encourage fair competition, and safeguard the interests of consumers. It was created in accordance with the 2002 Competition Act and went into full operation in 2009.

     The CCI wants India to have a strong competitive environment. In addition, the Commission also advocates for competition, raises public awareness, and provides training on competition-related matters. It also provides an opinion on competition-related matters upon referral from a governmental entity created under any law.

  • After Gaming Business Winzo Filed a Complaint, CCI Orderes an Investigation into Google

    In response to a complaint by Winzo Games alleging unfair business practices regarding the listing of real money gaming applications on the Play Store, the Competition Commission of India (CCI) on 28 November ordered a thorough probe into Google.

     In its ruling, the CCI determined that Google had abused its dominant position and was therefore prima facie in breach of the Competition Act’s antitrust prohibitions. Additionally, within 60 days after receiving this decision, the Commission instructs the DG to finish the investigation and submit a consolidated investigative report.

    Based on a comprehensive analysis of the case’s facts and circumstances, the Commission believes that Google may be in breach of Sections 4(2)(a)(i), 4(2)(b), and 4(2)(c) of the Act, as specified in this judgement. This necessitates a thorough inquiry, the order said.

    Why Winzo Took Matters to Court?

    In its complaint, Winzo Games, the case’s informant, claimed that Google both prevents its game from being published on the Play Store and shows malware alerts to users who try to download it from the website. Winzo said that these cautions damage its brand and deter prospective customers from using its service.

     In 2022, Winzo launched a lawsuit against the Play Store when Google modified its gaming guidelines. Google began permitting rummy and daily fantasy games on the Play Store in 2022, but many skill-based gaming sites were left out. In its ruling, the antitrust watchdog pointed out that Google’s alleged preferential treatment of online casual gaming platforms like Zupee and MPL raises questions about possible discriminatory practices or selective enforcement of Google’s policies, which is against Section 4(2)(a)(i) of the Act.

    According to CCI, any unjust limitations Google places on advertisers are probably going to have anti-competitive effects and hurt their capacity to compete in the market.

     In response to the accusations, Google told CCI that its ads policy is transparent and consistently applied. In its statement to CCI, Google stated that it had no business incentive in rejecting ad revenue needlessly and that its strategy reflects both its choice to reduce legal risk and its duty to abide by the law.

    Google is Not Providing Valid Justification

    In its complaint, Winzo also claimed that Google had not offered a convincing explanation for limiting the number of RMG (real money gaming) apps to only two categories and that its responses to this claim had been inconsistent, unsupported, and predicated on conjecture and unconfirmed market data.

    The Play Store is considered a “must-have” platform for app developers because it comes pre-installed on all Android devices. According to the Commission, excluding non-DFS and non-Rummy RMG apps from the Play Store is equivalent to denying them access to the market. 

    According to CCI, Google essentially establishes a two-tier market by giving preferential treatment to specific app categories, giving some developers better access and visibility while discriminating against and putting others at a competitive disadvantage. While directing a thorough inquiry, the fair trade regulator stated that nothing in the decision would amount to a final judgement on the case’s merits. The DG will carry out the probe “without being influenced in any way whatsoever by the observations made herein,” it stated. 

    WinZo Games co-founder Saumya Singh Rathore stated in a statement following the CCI order that the order is a step in the right direction towards re-establishing equity in the digital economy. A strong industry depends on competition and innovation, both of which are suppressed by monopolistic methods. This choice is an important step towards guaranteeing fair chances for all participants, encouraging creativity, and establishing a level playing field that is advantageous to companies and customers alike.

    CCI Approves Temasek’s Stake Acquisition in Rebel Foods
    Temasek Holdings receives CCI approval to acquire a stake in Rebel Foods, paving the way for strategic investment in the cloud kitchen leader.
    StartupTalkyNitin Konde