Google on CCI’s Rs 936 crore fine: ‘Our model powered India’s digital transformation’

Google’s low-cost business model linked to Android and Google Play has powered India’s digital transformation, the US-based company said in a statement on Wednesday, reacting to the Competition Commission of India’s decision to impose a Rs 936-crore fine over “anti-competitive practices”.

The regulator found that Google was in a dominant position in the markets for licensable operating systems for smart mobile devices and it had been misusing its position vis-a-vis Google Play store policies.

“Selling of in-app digital goods constitutes an important means for app developers to monetize their creations/innovations. However, for in-app digital goods to be distributed to purchasing users, developers must configure their apps so that all purchases of the digital goods go through Google’s payment system, which processes the transactions,” it said, asking the company to desist from “anti-competitive practices”.

In response, Google said Indian developers have greatly benefitted from several aspects of the Android and Google Play ecosystem. It said the tech giant remained committed to its users and developers.

“Indian developers have benefited from the technology, security, consumer protections, and unrivaled choice and flexibility that Android and Google Play provide. And, by keeping costs low, our model has powered India’s digital transformation and expanded access for hundreds of millions of Indians. We remain committed to our users and developers and are reviewing the decision to evaluate the next steps,” it said.

Last week, CCI fined Google Rs 1,337.78 crore for abusing its dominant position in the Android mobile device ecosystem.

India is Google’s largest market in terms of users.

The information-technology behemoth is being led by Indian-American Sundar Pichai.

Pichai was born in India and received his engineering degree from the prestigious Indian Institute of Technology (IIT).