The Indian government intends to take action against Google, a subsidiary of Alphabet Inc, following the findings of an antitrust watchdog that revealed the company had engaged in anti-competitive practices. The Competition Commission of India imposed fines of $275 million on Google in October for abusing its dominant position in the Android operating system market and pressuring developers to use its in-app payment system.
Rajeev Chandrasekhar, the union deputy minister for information technology, expressed serious concerns about these findings and confirmed that the government would take appropriate action against Google. Chandrasekhar emphasized that the ministry is actively considering its response, which will be revealed in the coming weeks, and assured that the issue would not be ignored or overlooked.
Although Chandrasekhar did not specify the exact policy or regulatory measures the government would take, he stressed the significance of addressing this matter for the entire digital ecosystem in India. Google did not provide any comment in response to the minister's statements, and Chandrasekhar dismissed the need for further discussions, citing the court's decision as sufficient grounds for action.
While the case regarding in-app payments is still being appealed, an Indian tribunal validated the Competition Commission of India's findings regarding Google's anti-competitive conduct in the Android market in March, dismissing a legal challenge against the ruling. The growing tension between Indian companies and Google has prompted the competition watchdog to launch another inquiry into the tech giant, following complaints from Match Group, the owner of Tinder, and numerous startups regarding Google's new service fee system for in-app payments.
Google has previously defended its service fee system, highlighting that it supports investments in the Google Play app store and the Android mobile operating system, ensuring their free distribution. Nevertheless, Google was required to make significant changes in how it markets its mobile operating system in India as a result of the Android antitrust order, even though the company noted that no other jurisdiction had demanded such extensive alterations.
India's digital economy is crucial, with approximately 97% of the country's 620 million smartphones operating on the Android platform. Consequently, the government aims to protect this growing sector and prevent any market abuse or dominance, not limited to Google alone. Apple and Amazon are also facing potential cases related to anti-competitive practices in India. Chandrasekhar affirmed the government's commitment to safeguarding consumer choice and promoting fair competition within India's digital landscape.
In conclusion, the Indian government plans to take action against Google based on the findings of an antitrust watchdog, signaling its dedication to upholding fair competition and protecting the digital economy of the country.
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