CCI fines Google 1337 crores

If anyone has bought an Android phone within the last few years, chances are, that they found the following apps pre-installed. They could not be uninstalled either. At most, the user could disable them. Whether they wanted them or not, the user had to have these apps.

A. Youtube

B. Chrome

C. Google Search

D. Google Play Store

E. Google Maps

F. Gmail

Why would manufacturers do this? Especially since many of them would have liked to direct users to their own app stores? (a place from where a user can download an app)

They had to do this because it was required by Google. If any manufacturer wanted to use the Android Operating System .

Much of this story is reproduced from the government release, which explains the issue clearly. You can read the original notification here.

Smart mobile devices need an operating system (OS) to run applications (apps) and programs. Android is one such mobile operating system. It was acquired by Google in 2005. 

Google operates/ manages the Android OS as well as licences its other proprietary applications and OEMs- Original Equipment Manufacturers – use this OS & Google’s apps in their smart mobile devices.

Accordingly, they enter into multiple agreements to govern their rights and obligations. These include Mobile Application Distribution Agreement (MADA), Anti-fragmentation Agreement (AFA), Android Compatibility Commitment Agreement (ACC), Revenue Sharing Agreement (RSA), etc.

Now, if Youtube comes pre-installed on their phone, a consumer is not likely to use another video service like, let’s say, Vimeo.

Likewise, Google Maps coming pre-installed affects the market for other mapping apps.

Chrome affects other browsers, while the Search ensures that the user does not use any other search engine.

This creates a monopoly.

What did the CCI say?

The CCI has ruled that:

• Mandatory pre-installation of entire Google Mobile Suite (GMS) under MADA (with no option to un-install the same) and their prominent placement amounts to imposition of unfair condition on the device manufacturers and thereby in contravention of the provisions of Section 4(2)(a)(i) of the Act. These obligations are also found to be in the nature of supplementary obligations imposed by Google on OEMs and thus, in contravention of Section 4(2)(d) of the Act.
• Google has perpetuated its dominant position in the online search market resulting in denial of market access for competing search apps in contravention of Section 4(2)(c) of the Act.
• Google has leveraged its dominant position in the app store market for Android OS to protect its position in online general search in contravention of Section 4(2)(e) of the Act.
• Google has leveraged its dominant position in the app store market for Android OS to enter as well as protect its position in non-OS specific web browser market through Google Chrome App and thereby contravened the provisions of Section 4(2)(e) of the Act.
• Google has leveraged its dominant position in the app store market for Android OS to enter as well as protect its position in OVHPs market through YouTube and thereby contravened provisions of Section 4(2)(e) of the Act.
• Google, by making pre-installation of Google’s proprietary apps (particularly Google Play Store) conditional upon signing of AFA/ ACC for all android devices manufactured/ distributed/ marketed by device manufacturers, has reduced the ability and incentive of device manufacturers to develop and sell devices operating on alternative versions of Android i.e., Android forks and thereby limited technical or scientific development to the prejudice of the consumers, in violation of the provisions of Section 4(2)(b)(ii) of the Act.

What is the decision? What all will Google have to do?

In addition to the 1337 crores fine, Google will also have to:

1. OEMs shall not be restrained from (a) choosing from amongst Google’s proprietary applications to be pre-installed and should not be forced to pre-install a bouquet of applications, and (b) deciding the placement of pre-installed apps, on their smart devices.
2. Licensing of Play Store (including Google Play Services) to OEMs shall not be linked with the requirement of pre-installing Google search services, Chrome browser, YouTube, Google Maps, Gmail or any other application of Google.
3. Google shall not deny access to its Play Services APIs to disadvantage OEMs, app developers and its existing or potential competitors. This would ensure interoperability of apps between Android OS which complies with compatibility requirements of Google and Android Forks. By virtue of this remedy, the app developers would be able to port their apps easily onto Android forks.
4. Google shall not offer any monetary/ other incentives to, or enter into any arrangement with, OEMs for ensuring exclusivity for its search services.
5. Google shall not impose anti-fragmentation obligations on OEMs, as presently being done under AFA/ ACC. For devices that do not have Google’s proprietary applications pre-installed, OEMs should be permitted to manufacture/ develop Android forks based smart devices for themselves.
6. Google shall not incentivise or otherwise obligate OEMs for not selling smart devices based on Android forks.
7. Google shall not restrict un-installing of its pre-installed apps by the users.
8. Google shall allow the users, during the initial device setup, to choose their default search engine for all search entry points. Users should have the flexibility to easily set as well as easily change the default settings in their devices, in minimum steps possible.
9. Google shall allow the developers of app stores to distribute their app stores through Play Store.
10. Google shall not restrict the ability of app developers, in any manner, to distribute their apps through side-loading.

Is Google the only one doing this?

At least on Samsung phones, several Samsung apps come pre-installed and cannot be uninstalled. Some of them can be stopped, but for some, like Bixby, neither can they be disabled, nor their permissions revoked. This means that Samsung is getting our location, nearby devices, and other information, whether we like it or not.