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| CCI imposes ₹1337.76 crore penalty on Google for anti-competitive practices | Daily Current Affairs Dose |
Our Daily Current Affairs Dose 2022 will help you to crack the General Awareness section of Banking Insurance SSC Railway UPSC and all government jobs exams.
CCI imposes ₹1337.76 crore penalty on Google for anti-competitive practices | Daily Current Affairs Dose
The Competition Commission of India (CCI) has imposed a penalty of Rs. 1,337.76 crore on Google for abusing its dominant position in multiple markets in the Android Mobile device ecosystem, apart from issuing cease and desist order. The CCI also directed Google to modify its conduct within a defined timeline.
Smart mobile devices need an operating system (OS) to run applications (apps) and programs.
Android is one such mobile operating systems which was acquired by Google in 2005. The CCI in the instant matter has examined various practices of Google w.r.t. licensing of this Android mobile operating system and various proprietary mobile applications of Google (e.g. Play Store, Google Search, Google Chrome, YouTube, etc.).
For this purpose, the CCI delineated following five relevant markets in the present matter
- Market for licensable OS for smart mobile devices in India
- Market for app store for Android smart mobile OS in India
- Market for general web search services in India
- Market for non-OS specific mobile web browsers in India
- Market for online video hosting platform (OVHP) in India
Google CCI Penalty: CCI imposed fine of Rs. 1338 crore on Google
CCI imposed fine of Rs. 1338 crore on Google: During the course of inquiry, Google argued about the competitive constraints being faced from Apple. In relation to understanding the extent of competition between Google’s Android ecosystem and Apple’s iOS ecosystem, the CCI noted the differences in the two business models which affect the underlying incentives of business decisions. Apple’s business is primarily based on a vertically integrated smart device ecosystem which focuses on sale of high-end smart devices with state of the art software components.
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Whereas Google’s business was found to be driven by the ultimate intent of increasing users on its platforms so that they interact with its revenue earning service i.e., online search which directly affects sale of online advertising services by Google.
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Important facts for upcoming exams from the above Current Affairs Topic
- Formation of Google: September 4, 1998 in Menlo Park, California
- Founder of Google: Larry Page and Sergey Brin
- Headquarters of Google: California, U.S.
- CEO of Google: Sundar Pichai
- Number of employees in Google: 139,995 (2021)
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