Google slapped with $161.9 million fine in India for ‘unfair’ Android practices

Google is facing a hefty fine in India for allegedly abusing its control over Android to stifle competition. The Competition Commission in India has fined Google approximately $161.9 million for allegedly favoring its Android apps through restrictive terms. This practice is said to discourage phone makers from creating heavily modified Android versions that are less reliant on Google services.

The Commission accuses Google of using its dominant position to suppress rivals in search, app stores, web browsers, and video services. Google has traditionally required phones with the Play Store to also include apps like Chrome and YouTube, often with prominent placement on the home screen. While alternatives like Firefox and Vimeo can be installed, they are not included by default. Brands can opt for the Android Open Source Project (AOSP) for more flexibility, but they lose access to the Play Store.

The regulator has issued a cease and desist order, requiring Google to allow companies to choose which apps to preinstall. Google is also prohibited from imposing anti-fragmentation clauses that restrict Android forks, as well as offering incentives for exclusive search deals. Third-party app stores must be allowed to distribute through the Play Store, and users must have the freedom to choose their search engine upon setup and uninstall unwanted Google apps.

Google has yet to comment on the matter until it receives the official order from the Commission. While the fine may seem insignificant for Google given its massive revenue, the order could have significant implications for its dealings with Android manufacturers. This development follows similar demands for change from South Korea, the European Union, and other jurisdictions. With India being the second-largest smartphone market globally, Google cannot afford to disregard these regulatory actions without risking its position in the mobile industry.