Ending dominance: The Hindu Editorial on India’s Competition Commission’s decision against Google

Mobile users of a digital powerhouse like India need an environment of real choice

Mobile users of a digital powerhouse like India need an environment of real choice

Recent India’s competition regulator orders against Google For Android is abusing its dominant position in the mobile device ecosystem This is important not only for the amount of fines imposed but also for the drastic change in business practices that the IT giant is required to do. On Thursday, the Competition Commission of India fined Google around ₹1,337 crore, said to be a provisional amount, for placing such restrictive clauses in its agreements with original equipment manufacturers (which use its Android). platform) that it can keep the competition away. And because of such agreements, the order said, “Google ensured that users continued to use its search services on mobile devices, leading to uninterrupted growth of advertising revenue for Google.” Therefore, it concluded that Google’s whole idea of ​​imposing such restrictions on its device partners was to “protect and strengthen its dominant position in general search services and, thus, its revenue through search ads”. This decision, both the penalty and the regulator’s direction to Google to “modify its conduct”, would be welcomed by anyone who realizes the power of large IT platforms to ward off competition and, therefore, protect users’ interests. likes to.

It is worth mentioning that it will not be business as usual for Google, as the regulator has issued a cease-and-desist order against it, according to which it will have to drastically change the terms of the deals it has with original equipment makers. For example, by order of the Competition Commission, Google must no longer force original equipment manufacturers to choose from its own bouquet of apps to pre-install on devices. Nor, the order said, require device makers to pre-install other apps like Google Search, Chrome, YouTube, Maps, etc., as a pre-condition for their Play Store licenses. It has also been directed against banning users from uninstalling its pre-installed apps. One of the requirements, in fact, targets Google’s primary revenue generator. It said, “Google will allow users, during initial device setup, to choose their default search engine for all search entry points.” Among many such requirements, this could mean that Google will have to change its business model in India. Google has termed the order a “big blow” to Indian businesses and consumers, saying it opens up security risks, while also potentially raising the cost of mobile devices. While the option of legal review is open, it is to the regulator’s credit that Google’s anti-competitive practices have been weeded out. Mobile users of a potential digital powerhouse like India need an environment of real choice.