⚖️Google v/s CCI: The Rs. 1,337 Cr Courtroom Drama
The CCI has slapped Google with a fine worth Rs. 1,337 crores. And Google, in turn, dragged it to the Supreme Court! Who wins this courtroom drama?
Google rules our lives. Period.
Can you even imagine going a whole day without Google?
But our beloved Google may soon lose its throne.
Thanks to the Competition Commission of India that has slapped Google with two fines worth Rs. 2,273 crores (Rs. 1,337 crores for Android ecosystem violations and Rs. 936 crores for anti-competitive Play Store policies)!
Why has the CCI fined Google?
How will Google change after CCI's orders?
How will this impact India?
Sit tight and dive in, as we break down the Google v/s CCI case for you.
🌍How Google Came to Dominate the World
Ever wondered how Google became Google?
Let's rewind a little.
Back in 2005, Google took a decision that changed it forever.
A decision that has impacted all our lives.
It bought Android for a measly $50 million!
Yes, the same Android that is powering your phone right now (unless you're from the iPhone gang!).
Android was for Google what the Mind stone was for Thanos: it made it inevitable.
Today, Android has a 71.86% market share, while iOS has a 27.6% market share.
With this began the slow and steady monopolisation by Google.
Google got Android phones to:
Pre-install Google apps like Google Chrome and Play Store
Make Google Search the default search engine
Yes, every Android phone has had Google Search. It was bound to become our go-to friend!
Now, while Play Store has become our friend, app developers have a bitter relationship with it. And you can blame Google for it!
All in-app purchases would have to pass through Google, and Google took a 15-30% cut on every purchase!
This is where the watchdog and our rescuer, CCI, stepped in.
💰Google v/s CCI: What's the Fine About?
The CCI wants to end Google's Android dominance and its unfair Play Store policies.
So, it has listed 10 Commandments!
Summarising them:
Google can't force or incentivise manufacturers to pre-install its apps
It cannot restrict uninstalling its pre-installed apps
It cannot link licensing of Play Store with pre-installing its other apps
It can't deny Play Store APIs to manufacturers or competitors
Google has to list other app stores on its app store
It shall allow users to select the default search engine during initial setup
Now, this could mean a massive financial blow to Google. Android earned $19 billion for the company in 2020!
If Chrome and Play Store lose dominance, Google will lose a major chunk of ad revenue it earns from them.
So, Google dragged CCI to court (over Android ecosystem violations). On what grounds? It claimed that…
The CCI was unoriginal and had copied the EU's.
The move would make smartphones super expensive and would slow down digital adoption.
Now, the first complaint sounded pretty juvenile. But the second one caught our attention…
How can an anti-competitive ruling make phones expensive?
🤺Google's Counter Argument
Smartphone manufacturers will have to design forks (new versions of Android OS) if they don't want pre-installed Google apps.
Now, they will have to use their own resources to provide security and functionalities in these phones (features that came in-built with Google). This will increase their costs.
Plus, with Google gone, there could be security risks for users.
Right now, Google vets all apps before installation.
On the face of it, the argument seems sound.
And manufacturers like Micromax even sided with Google here.
But companies like Samsung and Xiaomi already use these forks. They have Google apps pre-installed because they want access to Google Search and Play Store.
So, Google's argument doesn't really make sense, does it? Which is why the Supreme Court has refused to stay the CCI's orders. Google will have to pay 10% of the fine within a week. And will also have to follow the orders the CCI laid down.
What does this mean for India?
🤔Google's Loss = India's Gain?
Google's fall may finally give startups like MapMyIndia and Indus OS App Store a chance to rise.
This could be the defining moment for India. This could spur innovation in India, leading to homegrown search engines and app stores.
But, we're so used to Google apps now. Will not having them pre-installed become yet another pain point?
More importantly, can startups defeat a giant like Google? Or is it too late?
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