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NEW DELHI, Oct 28 (Reuters) – Google is planning a legal challenge to block India’s antitrust watchdog’s decision to change its approach to its Android operating system, which it fears will hinder its promotion. in the media, sources with direct knowledge of the situation told Reuters.
The Alphabet Inc ( GOOGL.O ) unit has been fined $275 million in two Indian antitrust rulings since last week – one over its policies on paying in-app commissions and the other over abuse of its position in the market for the Android operating system.
The decisions come as Google ramps up its search efforts around the world. Last month, there was a big problem when a European court upheld a 2018 ruling that it said generally confirmed the decision that the company imposed “unlawful restrictions on the producers of Android mobile devices.” Google plans to appeal the decision, which includes a record $4.1 billion fine.
The Competition Commission of India’s (CCI) decision on Android, despite a smaller $162 million fine, has worried Google as it seeks broader recovery options, three sources familiar with the matter said. company ideas.
One of the sources said that Google is concerned that the CCI’s decision could increase the legal burden on other jurisdictions and may file a legal petition to block the implementation of the planned antitrust order. in weeks.
Google declined to comment on its legal plans, repeating its statement from last week that the CCI order “is a big problem for Indian consumers and businesses, opening up serious security risks.” … and increasing the affordability of mobile devices for Indians.”
Abhishek Manu Singhvi, the lead for Google in its arguments before the CCI, tweeted on Wednesday that “weaknesses and patents” in the order will not be able to challenge and succeed.
Google has faced criticism around the world that it licenses its Android operating system to smartphone players but signs antitrust agreements that prevent competition. The American firm claims that Android has more options for everyone, and these agreements help make the operating system cheaper.
In the case of the European Commission, for example, its antitrust authority in 2018 Google determined its dominant position by forcing developers to pre-install two of its apps – Google Search and its Chrome browser – and its Google Play store on Android devices.
The Indian order, one of the sources, is concerned with the continuation and ban of many applications of Google – “The License of the Play Store … will not be linked to the previous arrangement in integration” Google search services. , Chrome browser, YouTube, Google Maps, Gmail and other Google applications,” said the CCI.
Faisal Kawoosa, the founder of Indian research firm Techarc, said that these pre-implementation restrictions will force Google to consider alternative revenue models such as licensing fees to device manufacturers for Android in India, as they do in Europe.
“The CCI recommendations strike at the heart of Google’s revenue model for Android — which relies on a volume game where the user base is larger and there are more ways to monetize,” Kawoosa said.
In Europe, 75% of the 550 million smartphones run on Android, compared to 97% of the 600 million devices in India, according to Counterpoint Research.
Google is also concerned that the CCI has ordered no restrictions in India on so-called “sideloading”, a practice of downloading apps without using an app store, and allowing other app store to be available in its Play Store, two of the sources.
However, these are expected to raise the expectations of domestic developers, such as the Indus App Bazaar, which offers thousands of apps in English and regional languages. The order “will provide more options and innovation for Indian manufacturers,” Indus said this week.
Aditya Kalra, Arpan Chatruvedi, Munsif Vengatill spoke in New Delhi; Edited by Sanjeev Miglani and Louise Heavens
Our Standards: Thomson Reuters’ Guardian Principles.
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