Google is involved in anti-competitive practices, initiate probe: Competition Commission of India

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In an order dated June 22, The Competition Commission of India (CCI) ordered an investigation into allegations that Alphabet Inc's Google abused its dominant Android operating system's position in smart television market of the country.

The CCI stated that based on information available, including submissions made by Google, it was "convinced that a case is made out for directing an investigation under section 26(1) of the Competition Act (the Act)" by the CCI director general. The order reads,

“In view of the foregoing, the Commission directs the Director General (‘DG’) to cause an investigation to be made into the matter under the provisions of Section 26(1) of the Act. The Commission also directs the DG to complete the investigation and submit the investigation report within a period of 60 days from the date of receipt of this order.”

Two Delhi-based lawyers Mr. Kshitiz Arya and Mr. Purushottam Anand in June 2020 filed a complaint before ICC under Section 19(l) (a) of the Competition Act, 2002 against Google LLC, Google India Private Limited, Xiaomi Technology India Pvt. Ltd. & TCL India Holdings Pvt. Ltd, alleging contravention of various provisions of Sections 3 and 4 of the Competition Act.

The complainants, being consumers of the android based smart-phones and smart television devices, alleged that Google is guilty of anti-competitive practices which violate Section 4 read with Section 32 of the Competition Act. It was also alleged that Google entered into anti-competitive agreements with Xiaomi and TCL India Holdings which were in violation of Section 3 read with Section 32 of the Act.

Google being a multinational technology company specializing in internet-related services and products provides its Android operating system to the majority of smart mobile and tablet manufacturers in India. The complainants alleged that Google entered into two agreements with smart TV Original Equipment Manufacturers (OEMs) Xiaomi and TLC, certain clauses of which amount to abuse of dominant position by Google in violation of various provisions of the Competition Act.

The complaint further alleged that by virtue of agreements entered into between the Google and other two companies, smart TV OEMs have decided to refrain from selling TVs with competing android based operating systems. As a result, Google’s competitors in this industry such as Amazon, have not been able to enter the market for licensable operating systems for TVs.

Google, however, denied any wrongdoing. It said its emerging smart TV sector in India was thriving due to the company's free licensing model, and added that Android TV competed with several well-established TV operating systems.

Nevertheless, based on the information available on record, the commission stated that it is prima facie convinced that a case is made out for directing an investigation by the DG against Google and ordered for the same.