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Google Changes Android System in India After Antitrust Ruling

“Implementation of these changes across the ecosystem will be a complex process and will require significant work at our end,” Google said in a blog post


A Google sign is seen at its office in California
Google had been concerned about India's Android decision as the directives were seen as more sweeping than those imposed in the European Commission's landmark 2018 ruling. Photo: Reuters

 

Google announced sweeping changes on Wednesday to how it promotes its Android system in response to a ‘landmark’ antitrust order by Indian regulators.

The US tech giant said it will allow device makers in India to licence its individual apps for pre-installation and give an option to users to choose their default search engine.

It also said it is updating the Android compatibility requirements to introduce changes for partners to build non-compatible variants of Android.

 

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In regard to in-app billing, which was at the centre of another recent Indian antitrust decision, Google said it will start offering users choice billing to all apps and games starting next month. That will help developers offer an option to choose alternative systems alongside Google’s when purchasing in-app digital content.

Indian authorities had said Google was engaging in anti-competitive practices by restricting the use of third-party billing or payment processing services.

The changes come after the Indian Supreme Court upheld stringent antitrust directives last week. The court reject Google’s challenge against a ruling by the Competition Commission of India that said the company abused its market position. The regulators ordered Google to change how it markets its Android system in a key growth market.

“Implementation of these changes across the ecosystem will be a complex process and will require significant work at our end and, in many cases, significant efforts from partners, original equipment manufacturers (OEMs) and developers,” Google said in a blog post.

Google had been concerned about India’s Android decision as the directives were seen as more sweeping than those imposed in the European Commission’s landmark 2018 ruling against the operating system.

About 97% of 600 million smartphones in India run on Android, while in Europe, the system accounts for 75% of the 550 million smartphones, according to Counterpoint Research estimates.

 

Lower tribunal appeal

The CCI ruled in October that Google, owned by Alphabet Inc, exploited its dominant position in Android and told it to remove restrictions on device makers, including those related to pre-installation of apps and ensuring exclusivity of its search. It also fined Google $161 million.

Hoping to block the implementation of the CCI directives, Google had approached the Supreme Court, warning that growth of its Android ecosystem will stall. It said it would be forced to alter arrangements with more than 1,100 device manufacturers and thousands of app developers if the directives kick in.

But the Supreme Court refused to block the directives as Google sought. The court had also said a lower tribunal – where Google first challenged the Android directives – can continue to hear the company’s appeal and must rule by March 31.

“We continue to respectfully appeal certain aspects of the CCI’s decisions,” Google said.

 

  • Reuters, with additional editing by Vishakha Saxena

 

 

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Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at [email protected]

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