New Delhi: Google has become the first company to utilize India’s newly-enacted settlement framework, receiving a settlement order to pay ₹20 crore to resolve an antitrust investigation by the Competition Commission of India (CCI) into allegations of its anti-competitive behaviour in the smart TV market, the watchdog said in a statement.
The resolution marks a significant shift in the regulatory landscape and compels the tech giant to unbundle its Play Store and Play Services on Android TVs in the country.
Mint was the first to report on 2 October 2024 that Google offered to settle the antitrust case after an investigation found the technology giant’s agreements with smart TV makers violated provisions of India’s competition law, making it the first company to invoke the brand-new settlement route enacted in 2023.
As per the settlement deal, Google will have to pay a settlement amount of ₹20 crore, after a 15% discount that comes with the scheme.
Queries emailed to Google on Monday seeking comments for the story remained unanswered till press time.
EU contemplating action
CCI’s move to settle the case with Google comes at a time its EU counterpart is reportedly contemplating action against Big Tech if EU’s trade talks with the US, after President Trump’s sweeping tariffs, fails.
The gist of the allegation against Google LLC, Google India Private Limited and two others was that Google misused its dominant position by enforcing restrictive agreements on original equipment manufacturers (OEMs), including compulsory bundling of the Play Store with Android TV operating system and preventing the use or creation of rival forked Android versions through its Anti-Fragmentation Agreements.
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CCI said in a statement on Monday that its investigation had found that Google’s agreements—Television App Distribution Agreement (TADA) and Android Compatibility Commitments (ACC)—executed together, allegedly imposed unfair terms by requiring the pre-installation of its full app bundle Google TV Services, preventing television makers from developing or using Android forks, and hindering innovation.
Objections, suggestions invited
The regulator said it had invited objections and suggestions from 45 parties on Google’s settlement application.
“The Commission considered the settlement proposal and observed that under the ‘New India Agreement,’ Google will provide a standalone license for the Play Store and Play Services for Android smart TVs in India, thereby removing the requirement to bundle these services or impose default placement conditions,” CCI said.
“By waiving the need for a valid ACC for devices shipped into India that do not include Google apps, OEMs can now sell and develop incompatible Android devices without violating the TADA,” CCI said.
The competition watchdog said that considering the material on record, an assessment of the settlement proposal as well as the nature, gravity, and impact of the alleged contraventions, it agreed to the settlement proposal.
“The final settlement amount, after applying a settlement discount of 15%, is ₹20.24 crore,” CCI said.
