India Orders Antitrust Investigation Against Google

Google Faces Antitrust Probe in India Over Android TV Dominance

India’s competition authority has initiated a formal investigation into claims that Google is leveraging its leading position with the Android operating system within the country’s smart television sector.

Investigation Details

This development follows closely after the European Union launched a similar antitrust investigation, focusing on alleged abuses related to Google’s role in the advertising technology industry.

The Competition Commission of India (CCI) began reviewing these concerns last year and has now determined that Google potentially violated certain antitrust regulations. Resolving an investigation of this magnitude could require multiple quarters, potentially exceeding a year.

Specific Allegations

The CCI believes Google has restricted the ability of device manufacturers to develop and market devices utilizing alternative Android versions, known as Android forks.

According to the 24-page order issued by the watchdog, Google’s requirement to sign Android Compatibility Commitments (ACC) for pre-installation of its apps – notably the Play Store – limits technical innovation and disadvantages consumers, violating Section 4(2)(b) of the Act.

Furthermore, the ACC prevents Original Equipment Manufacturers (OEMs) from producing or distributing devices running competing forked Android operating systems. This restriction, given Google’s dominance and network effects, effectively denies market access to developers of these alternative systems, breaching Section 4(2)(c) of the Act.

Google's Response

Google, which considers India its largest user base and pledged a $10 billion investment in the country last year, has refuted any wrongdoing.

A company spokesperson stated their confidence that their smart TV licensing practices adhere to all relevant competition laws.

Further Concerns Raised by the CCI

The CCI also found that Google’s practice of requiring television manufacturers to pre-install a suite of “must-have” apps, without allowing selective choices, constitutes an unfair condition imposed on these manufacturers, thus contravening Section 4(2)(a)(i) of the Act.

The regulator believes this also represents an attempt to leverage Google’s dominance in the Play Store to protect its own markets, such as online video hosting through YouTube, in violation of Section 4(2)(e) of the Act. A comprehensive investigation is deemed necessary to address these issues.

Market Context

Approximately 8 million smart TV sets were sold in India in 2019, with over 60% powered by Google’s Android operating system.

Data from Counterpoint research indicates that India’s TV shipments increased by 10% year-over-year, surpassing 3 million units in the first quarter of 2021.

Broader Regulatory Scrutiny

This week has presented challenges for major American companies operating in India.

Earlier this week, India proposed stricter e-commerce regulations that could potentially impact Amazon and Walmart’s Flipkart.

Ongoing Antitrust Cases

This order marks the third active antitrust investigation India has launched against Google.

Late last year, the CCI initiated an investigation into Google’s alleged abuse of its app store dominance to promote its own payment services within the nation.