Google Accuses India’s Antitrust Watchdog of Favoring Amazon

Google has lodged a complaint against India’s antitrust regulatory body, accusing it of ordering changes to Google’s business model to protect its rival, Amazon. 

Legal papers reveal that Amazon claimed Google’s restrictions hindered the development of its customized Android system, Fire OS. Google has sought to reverse the Competition Commission of India’s (CCI) October 2022 order, which demanded multiple changes to Google’s business practices. The order aimed to address monopolistic practices and resulted in a fine of $163 million imposed on Google by the CCI.

Google’s Allegations and Response

Google contends that the CCI’s investigation unit relied on European evidence that was not examined in India, claiming that certain sections were “copypasted” from a European ruling against the company. Google argues that the CCI unfairly based its adverse decision on Amazon’s accusation, asserting that Amazon’s Fire OS failed commercially due to poor user experience and was not even launched in India. Google believes that the CCI’s directives were intended solely to protect Amazon, which had complained about the limitations imposed by Google’s restrictions on developing its Android fork.

The CCI’s Order and Google’s Actions

The CCI’s October order required Google to allow the distribution of modified versions of its Android operating system without licensing restrictions, including pre-installation of Google apps. Google has approached India’s Supreme Court to challenge the CCI’s order and seeks to nullify the 10 mandated changes to its business model. The company argues that it did not abuse its market position and that the CCI’s investigation lacked fairness and relied on flawed evidence.

Implications and Disagreements

Google’s dispute with the CCI underscores its disagreement with the manner in which the Android investigation was conducted. The CCI’s directives were seen as more extensive than the European Commission’s landmark ruling in 2018 against Google’s Android market abuse. This ongoing legal battle raises concerns for Google, particularly in India, as it faces penalties and demands to comply with the CCI’s directives.

Google’s Business Model Adjustments and Future Prospects

Following the CCI’s order, Google has made significant changes to its Android business model in India. However, it continues to contest the penalty and the finding that it abused its market position. The CCI is urging Google to comply with all its directives, while Google maintains its stance in the Supreme Court.