25 Oct 2022: PIB Summary for UPSC

CCI Penalty on Google

Syllabus: GS-3, Economy; Issues relating to planning, mobilization, of resources, growth, development and employment.

Prelims: CCI

Mains: Role played by CCI in curbing anti-competitive practices 

Context: CCI imposed a monetary penalty of Rs. 936.44 crores on Google for anti-competitive practices in relation to its Play Store policies.

Details:

• Apart from imposing the penalty, the Competition Commission of India (CCI) also issued a cease-and-desist order. 
• This is the second such penalty on the internet giant in a week.
  • The previous imposition of penalty was for ₹1,337.76-crore for “abusing its dominant position in multiple markets in the Android mobile device ecosystem”. Read more on this in CNA dated Oct 21, 2022.

What is the issue?

• App stores are the medium through which App developers distribute their products to the end users.
• The availability of app stores is directly dependent on OS installed on a smart device.
• CCI found Google to be dominant in the markets for licensable OS for smart mobile devices & market for app stores for Android smart mobile OS.
• Google’s Play Store constitutes the main distribution channel for app developers in the Android mobile ecosystem.
• Google’s Play Store policies make it compulsory for App developers to exclusively use Google Play’s Billing System (GPBS) not only for receiving payments for Apps (and other digital products like audio, video, and games) distributed/sold through the Google Play Store but also for certain in-app purchases.
• In addition, app developers cannot, within the app, provide users with a direct link to a webpage containing an alternative payment method. They cannot use language that encourages users to purchase the digital item outside of the app.
• Unless these provisions of Google are complied with, the Apps won’t be allowed to be listed on Play Store, thus making the App owners lose out on the huge base of Android users as customers.

October 25th, 2022, PIB:- Download PDF Here

Read the previous PIB articles here.