India's competition authority has given the go-ahead for Google's planned $4.5 billion investment in Jio Platforms, the country’s leading telecom company, as announced in a social media post on Wednesday.

Google revealed in July its intention to invest $4.5 billion to acquire a 7.73% ownership stake in the prominent Indian telecom network. This agreement includes a collaborative effort between Google and Jio Platforms to create a specialized version of the Android operating system, aimed at producing affordable smartphones for a substantial new user base, according to statements from both companies.

Jio Platforms intends to introduce up to 200 million smartphones over the coming three years, as outlined in presentations to various developers. These devices, similar to the approximately 40 million Jio feature phones currently in use, will feature an application store containing a limited selection of apps – a few dozen – all carefully reviewed and authorized by Jio, a developer familiar with the proposal explained. One industry source characterized Jio’s app distribution system as a closed ecosystem.

The Competition Commission of India (CCI) had previously expressed interest in examining the data-sharing arrangement between Google and Jio, as reported last month by the Economic Times, referencing an anonymous source.

Today’s announcement follows the CCI’s recent directive for a thorough investigation into Google, to determine if the Android developer favors its own payment service during smartphone setup (and whether manufacturers have the option to avoid this); and whether the Google Play Store’s payment processing system creates disadvantages for both apps utilizing UPI and the users themselves.

This in-depth investigation was initiated after the CCI’s preliminary assessment found that mandating Google Pay for app purchases or in-app transactions constituted “an imposition of unfair and discriminatory conditions, denial of market access for competing apps of Google Pay and leveraging on the part of Google,” the regulatory body stated.

Jio Platforms, having secured over 400 million customers, has garnered more than $20 billion in funding this year from 13 major investors, including Facebook, which contributed $5.7 billion to the Indian company. This transaction was also approved by the CCI. Jio Platforms operates as a subsidiary of Reliance Industries, the most valuable company in India, and is led by Mukesh Ambani, the wealthiest individual in Asia.