Alphabet Inc’s Google is set to face repercussions from the Indian government following an antitrust investigation that revealed the company’s misuse of its market position through anti-competitive practices, as disclosed by a top IT minister in an interview with Reuters.
Last year, India’s antitrust body imposed a $275 million fine on Google in two separate cases related to its dominant position in the Android operating system market and its insistence on developers utilizing its in-app payment system.
Rajeev Chandrasekhar, the federal deputy minister for information technology, expressed deep concern over these findings and emphasized that the Indian government will take appropriate action against Google. Chandrasekhar stated, “The ministry has to take action… Certainly it’s not something that we will leave and push under the carpet.”
While the specific policy or regulatory measures are not yet defined, Chandrasekhar, a prominent official in Prime Minister Narendra Modi’s administration, acknowledged the significance of this issue for India’s entire digital ecosystem.
When approached for comment, Google did not respond. Chandrasekhar indicated that discussions with Google were unnecessary, stating, “There is no need for any discussion. There is a finding of a court.”
In addition to the ongoing appeal regarding the payment case, an Indian tribunal recently affirmed the Competition Commission of India’s previous determination that Google engaged in anti-competitive conduct in the Android market.
The minister’s remarks coincide with escalating tensions between Indian companies and Google. The competition watchdog initiated another investigation after Match Group, the owner of Tinder, and numerous startups alleged that Google’s new in-app payment service fee system violated the competition commission’s prior ruling.
Google has defended the service fee as a means to support investments in the Google Play app store and the Android mobile operating system, enabling their distribution for free.
Following the antitrust order in relation to Android, Google was compelled to implement significant changes in how it promotes its mobile operating system in India, despite its assertion that “no other jurisdiction has ever asked for such far-reaching changes.”
Given that 97% of India’s 620 million smartphones operate on Android, the country is a critical growth market for Google.
Similar cases involving potential anti-competitive practices are also being pursued against Apple and Amazon in India. Chandrasekhar emphasized the government’s commitment to safeguarding India’s digital economy, stating, “We will certainly be looking into what the government needs to do to prevent anybody, including but not limited to Google, from abusing their market power or market dominance.”
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