India Is Investing In Google's Android Business Over Complaint Of Abuse
Dhir Acharya
India's CCI believes that they should investigate if Google is using its Android operating system’s dominant position in the market to hurt local players.
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It is estimated that over 95 percent of smartphones in India run on Android. Now, the antitrust watchdog in the country believes that they should investigate if Google is using its Android operating system’s dominant position in the market to hurt local players.
In 2018, after receiving a complaint from unspecified people, CCI (Competition Commission of India) began looking at the Android business of Google in India. As reported by Reuters citing unnamed sources, this April, CCI discovered that the tech giant had abused Android’s dominant position in the country, hence asked for a comprehensive investigation.
A spokesperson from Google told TechCrunch that the tech firm looks forward to working with the Competition Commission. The spokesperson said:
It may take as long as a year to complete the investigation and make a conclusion about the case, and the regulator may summon Google executives. The CCI hasn’t made any comments on this information.
If the investigation concludes that Google is guilty, the company may face a fine of up to 10 percent of its revenue in India or 300 percent of its net profits. Though India has become one of the largest markets for Google, it doesn’t make good money here. As of March 2018, the tech giant earned revenue of $1.4 billion in the country, as opposed to over $100 billion it earned made worldwide in the same period.
It’s unclear who filed the complaint or what the accusation is precisely.
With this move, India is following the EU’s actions in investigating Google’s businesses to make sure the tech giant isn’t taking advantage of its domination in this market. Earlier this year, it was concluded by the EU regulators that Google had forced its original equipment manufacturers to pre-bundle several apps on their Android devices, namely Google Play Store, Chrome browser, and Google Search.
As per Google, the company said that it would offer users more choices of search engines and browsers.
Previously, Indian’s regulator has investigated the search business of Google and the partnerships between Apple and local carriers for selling iPhones. In the Indian tech market, where most people make less than $2,000 a year, Apple occupies just a small market share.
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