Indian antitrust investigation reveals Google abused Android dominance, report says

NEW DELHI, Sept. 18 (Reuters) – Google has abused the dominance of its Android operating system in India, using its “huge financial muscle” to illegally harm competitors, the country’s antitrust authority found in a report. report on his two-year investigation seen by Reuters.

Alphabet Inc’s Google (GOOGL.O) has reduced “the ability and incentive of device makers to develop and sell devices running on alternate versions of Android,” the unit’s June report says. investigation by the Indian Competition Commission (ICC).

The US tech giant told Reuters in a statement it was eager to work with ICC to “show how Android has led to more competition and innovation, not less.”

Google has not received the investigation report, a person with direct knowledge of the situation told Reuters.

The ICC did not respond to a request for comment on the report. Senior ICC members will review the report and give Google another chance to defend itself, before issuing a final order, which could include penalties, said another person familiar with the matter.

Google could appeal any order to Indian courts.

Its findings are Google’s latest antitrust setback in India, where it faces multiple investigations into the payment apps and smart TV markets. The company has been the subject of investigations in Europe, the United States and elsewhere. This week, the South Korean competition regulator fined Google $ 180 million for blocking custom versions of Android.

‘WAVE, BIAS AND ARBITRARY’

Google submitted at least 24 responses during the investigation, defending itself and saying it did not hurt competition, the report said.

Microsoft Corp (MSFT.O), Amazon.com Inc (AMZN.O), Apple Inc (AAPL.O), as well as smartphone makers like Samsung and Xiaomi, were among the 62 entities that responded to CCI’s questions during of its Google survey, the report says.

Android powers 98% of India’s 520 million smartphones, according to Counterpoint Research.

When the ICC ordered the investigation in 2019, it said Google appeared to have leveraged its dominance to curtail the ability of device makers to opt for alternative versions of its mobile operating system and force them to pre-install. Google applications.

The 750-page report concludes that the mandatory pre-installation of apps “amounts to imposing unfair terms on device makers” in violation of India’s competition law, as the company leveraged its store’s position of Play Store applications to protect its dominance.

Play Store policies were “one-sided, ambiguous, vague, biased and arbitrary,” while Android “has enjoyed its dominance” in licensed operating systems for smartphones and tablets since 2011, according to the report.

The investigation was triggered in 2019 after two young Indian antitrust research associates and a law student filed a complaint, Reuters reported.

India remains a key growth market for Google. He said last year he would spend $ 10 billion in the country over five to seven years through equity investments and mergers, his biggest commitment to a key growth market.

Reporting by Aditya Kalra in New Delhi; Editing by William Mallard

Our Standards: Thomson Reuters Trust Principles.