Google has been fined more than $160 million by India’s Antitrust Authority after an investigation found the tech giant abusing its dominant position in the local smartphone market.
The California-based company’s Android mobile operating system is by far the dominant player in India, running on 95 percent of all smartphones in the country, according to research agency Counterpoint.
However, the Competition Commission of India (CCI) said the operating system was configured to unlawfully crowd out competitors from YouTube, the web browser Chrome and other popular Google apps.
Android had a number of Google apps preloaded on its phones, including the company’s proprietary search engine, “which gave Google’s search services a significant competitive edge over its rivals,” CCI said in a statement late Thursday.
“Markets should be allowed to compete on merits and the responsibility rests with (Google) that its conduct does not affect that competition on merits,” it added.
The commission fined 13.4 billion rupees ($162 million) and ordered the company to allow Android users to remove pre-installed Google apps.
It also urged Google not to enter into agreements with smartphone manufacturers that would encourage them to only sell Android-based devices or exclusively use their software.
The company said it will review the decision and consider its next steps.
“The CCI’s decision is a major setback for Indian consumers and businesses, it opens up serious security risks for Indians… and increases the cost of mobile devices,” a spokesman told AFP.
Google faced a similar antitrust ruling in the European Union, which found that the company had imposed “unlawful restrictions” on smartphone makers to use its search engine.
Last month, the EU’s second-highest court upheld a $4.1 billion fine against the company.
Global regulators have followed suit, and Google is facing a spate of cases in the United States and Asia over similar allegations.
India is home to the second highest number of smartphone users in the world after China.
The smartphone market grew 27 percent year-on-year in 2021, according to Counterpoint, with annual sales exceeding 169 million units.
More than 60 percent of the phones sold in the country are from top Chinese manufacturers, including Xiaomi and Oppo.
Apple remains a small player in the price-conscious market, but it has made some strides in recent years, and the company announced plans last month to manufacture its flagship iPhone 14 locally.
