Will Google's Anti-Competitive Behaviour Inflate Android Smartphone Prices in India?

Google issued a warning regarding Android phones, indicating that due to the current Competition Commission of India (CCI) order, smartphones would become more costly in India. Costs for app developers, equipment manufacturers, and customers are expected to rise.

Why will android phones become expensive in India?

• Google also stated that the latest antitrust ruling to modify how the firm distributes its Android platform might pose security risks to consumers and increase expenses.
• Because Google powers 97% of cell phones in India, the extent of any cost shift would be more extensive.
• This comes after CCI fined Google $161 million in October last year for abusing its dominant position in Android.
• In addition, the firm was punished for misusing its authority through the Play Store.

Why did CCI discover Google?

The antitrust watchdog CCI accused Google of collaborating with smartphone manufacturers to pre-install Google applications. According to CCI, Google should not compel smartphone manufacturers to pre-install applications. The watchdog demanded that Google offer equal access to all stakeholders. CCI wants other ecosystems to participate because it believes Google presently dominates. However, the IT behemoth has stated that it faces stiff competition from Apple.

According to the CCI, Google has been abusing its influence in ways that violate Indian competition rules. The CCI ordered Google to stop blocking app developers from utilising third-party charging or payment services and to stop restricting how end users use applications. The CCI also instructed Google not to treat its payment app, Google Pay, any better than other applications in India that utilise the same payment infrastructure.

CCI's Outlook

CCI's attorney Mukul Rohatgi said during the court hearing on Monday (16 January) that Google is unwilling to pay. In the same instance, however, it had paid a fine in a European court.

According to the CCI attorneys, "Their (Google's) claim that they cannot pay the punishment is untrue, given they paid over 4 billion euros in an EU lawsuit in 2017. The EU court also judged them to be abusing their dominating position. Because India is a third-world country, they do not pay." On Wednesday, the court will hear the same case again.

Conclusion

Experts stated that Google's imposition of limitations, such as required pre-installation of its apps, is anti-competitive. However, the business claims that such partnerships help keep Android free. When Google India moved the Supreme Court, the matter reached the Indian courts. It appealed the National Company Law Appellate Tribunal's decision (NCLAT).