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Separator

CCI's Google Orders to Serve as a Template for Corrective Action

CIO Insider Team | Friday, 28 October, 2022
Separator

Google’s case of two separate orders from the Competition Commission of India’s this month are expected to serve as a template ahead with the anti-trust regulator clearly spelling out the corrective action expected in its ‘cease and desist’ orders.

In providing a detailed do’s and don’ts for the company, the Commission’s ruling says that the US-based tech giant abused its dominant position in respect of Play Store, its interface for apps, and the mobile phone operating system Android.

CIO Insider reported that the CCI charged the tech giant with a penalty of Rs 936.44 crore for abusing its dominant position with respect to its Play Store policies this month.

Furthermore, the commission issued a cease-and-desist order, with the regulator prescribing eight corrective measures that Google Play needs to implement to correct the anti-competitive practices.

When the competition regulator finds an entity in violation of competition rules, it usually levies a monetary penalty on the entity and issues what is called a ‘cease and desist’ order, asking the entity to refrain from anti-competitive practices in the future

At the crux of the case is a policy of Google Play store that requires app developers to exclusively use Google Play's Billing System (GPBS) for all customer billings. This system has to be used not only for receiving payments from the apps but also for in-app purchases made by customers. Any App developer who doesn’t use GPBS is not allowed to list his product on the Google Play store.

This is the second CCI order against Google in the past week. The antitrust watchdog had on October 20 imposed a penalty of Rs 1,337.76 crore on Google for abusing its dominant position in multiple markets with its Android mobile operating system (OS), and prescribed a set of about a dozen key measures that the company has to comply with.

Making access to the Play Store dependent on mandatory usage of GPBS for paid apps and in-app purchases is one-sided and arbitrary and devoid of any legitimate business interest, according to CCI.

“The app developers are left bereft of the inherent choice to use payment processors of their liking from the open market”.

The novel approach to avoid protracted litigation from the digital platforms and extracting quicker remedies is the intention of the anti-trust regulator.

Additionally, they are expected to guide digital companies about activities that can be considered anti-competition.

When the competition regulator finds an entity in violation of competition rules, it usually levies a monetary penalty on the entity and issues what is called a ‘cease and desist’ order, asking the entity to refrain from anti-competitive practices in the future.



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