Google and CCI an antitrust tussle?
Search Engine Giant Google has been in news headlines for over a week now. This is because of two orders passed by the Competition watchdog of India, which heavily fined the Company.
The first order passed by the Competition Commission of India on October 20 imposed a penalty of Rs. 1337.76 Crore on Google under Section 27 of the Competition Act, 2002, for abusing its dominant position in multiple markets in the Android Mobile device ecosystem.
The CCI's order came in a complaint filed by three advocates in 2018: Umar Javed, Sukarma Thapar and Aaqib Javeed.
The CCI ordered an investigation into Google Unfair Business Practices in 2019 after consumers complained about Android-based smartphones. The allegations against Google were based on two agreements between Original Equipment Manufacturers (OEMs) of Android OS and Google — the Mobile Application Distribution Agreement (MADA) and the Anti-Fragmentation Agreement (AFA).
Subsequently in its order the Competition Commission of India (CCI) imposed a penalty of ₹936.44 Crore on Google yesterday. The tech giant was found guilty of busing its market position on Play Store to promote its payments app and in-app payment system. The anti-competitive has directed the company to cease and desist from unfair business practice. Furthermore in its statement CCI said that, "The Commission hereby directs Google to cease and desist from indulging in anti-competitive practices,".
Current Affairs Notes By Success Mantra Coaching Institute GTB Nagar Delhi CLICK HERE
Second penalty in one month
This is the second fine Google has received this month from India's competition watchdog. Previously, the CCI penalized Google $162 million or 1,337.76 crore for engaging in anticompetitive behavior in relation to Android. In a CCI investigation, it was discovered that Google was exploiting its dominant position in the local smartphone market. Following investigation, it was determined that "Google has maintained its dominating position in the online search industry, denying entry to the market to competing search apps in violation of Section 4(2)(c) of the Act. In violation of Section 4(2)(e) of the Act, Google has used its dominance in the Play Store to defend its dominance in general online search.
Competition Commission of India (CCI)
About:
- Competition Commission of India (CCI) is a statutory body of the Government of India responsible for enforcing the Competition Act, 2002, it was duly constituted in March 2009.
- The Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) was repealed and replaced by the Competition Act, 2002, on the recommendations of the Raghavan committee.
Composition:
- The Commission consists of one Chairperson and six Members who shall be appointed by the Central Government.
- The commission is a quasi-judicial body which gives opinions to statutory authorities and also deals with other cases. The Chairperson and other Members shall be whole-time Members.
PRAVAHINI Current Affairs Notes By Success Mantra Coaching Institute GTB Nagar Delhi CLICK HERE
Linking Issues: Competition Appellate Tribunal (COMPAT) with the National Company Law Appellate Tribunal (NCLAT) in 2017 and Google.
Reference:
Video Reference: 2/11/2022 Video at https://www.youtube.com/c/SuccessMantraDigital
Practice Time:
Q1. Who is the Current head of CCI?
Q2. The first search query on the engine was?
Q3. Google was founded on?
Answer:
- Ashok Kumar Gupta,
- Gerhard Casper,
- September 4, 1998, by Larry Page and Sergey Brin
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