India’s government is preparing to take action against Alphabet Inc.’s Google following a ruling by the country’s antitrust watchdog that found the tech giant guilty of engaging in anti-competitive practices. Last year, the watchdog fined Google $275 million in two cases related to its abuse of its dominant position in the Android operating system market and its coercion of developers to use its in-app payment system.
Rajeev Chandrasekhar, the federal deputy minister for information technology, expressed serious concerns about the findings and stated that the government would not ignore the issue. He confirmed that the ministry has plans to address the matter in the coming weeks, although he did not provide specific details regarding the nature of the proposed policy or regulatory actions.
Chandrasekhar emphasized that the situation is alarming not only for the Indian government but also for the entire digital ecosystem in the country. Despite requests for comment, Google did not respond to the minister’s remarks. Chandrasekhar clarified that there was no need for further discussions with Google as the court’s ruling had already been issued.
In March, an Indian tribunal upheld the Competition Commission of India’s findings of anti-competitive conduct by Google in the Android market, while the payments case is currently under appeal. The growing tension between Indian companies and Google has led to another inquiry by India’s competition watchdog, prompted by complaints from Match Group, the owner of Tinder, and numerous startups. They alleged that Google’s new service fee system for in-app payments violated the competition commission’s decision from October.
Google has defended its service fee, stating that it supports investments in the Google Play app store and the Android operating system, ensuring their free distribution. However, following the antitrust order related to Android, Google was compelled to implement significant changes in how it promotes its mobile operating system in India, despite the company’s assertion that no other jurisdiction had requested such extensive modifications.
As the Indian government prepares to take action against Google, the outcome of this dispute could have far-reaching implications for the tech giant’s operations in one of the world’s largest digital markets.
