Google abused Android dominance_ finds India antitrust probe

Tech giant Google abused the dominant position of its Android operating system in India_ using its "huge financial muscle" to illegally hurt competitors_ the country's antitrust authority found in a report on its two-year probe seen by Reuters.

Alphabet Inc's (GOOGL.O) Google reduced "the ability and incentive of device manufacturers to develop and sell devices operating on alternative versions of Android_" says the June report by the Competition Commission of India's (CCI) investigations unit.

The U.S. tech giant told Reuters in a statement it looks forward to working with the CCI to "demonstrate how Android has led to more competition and innovation_ not less."

Google has not received the investigation report_ a person with direct knowledge of the situation told Reuters.

The CCI did not respond to a request for comment on the report. Senior CCI members will review the report and give Google another chance to defend itself_ before issuing a final order_ which could include penalties_ said another person familiar with the case.

Google would be able to appeal any order in India's courts.

Its findings are the latest antitrust setback for Google in India_ where it faces several probes in the payments app and smart television markets. The company has been investigated in Europe_ the United States and elsewhere. This week_ South Korea's antitrust regulator fined Google $180 million for blocking customised versions of Android.

'VAGUE_ BIASED AND ARBITRARY'

Google submitted at least 24 responses during the probe_ defending itself and arguing it was not hurting competition_ the report says.

Microsoft Corp (MSFT.O)_ Amazon.com Inc (AMZN.O)_ Apple Inc (AAPL.O)_ as well as smartphone makers like Samsung and Xiaomi_ were among 62 entities that responded to CCI questions during its Google investigation_ the report says.

Android powers 98% of India's 520 million smartphones_ according to Counterpoint Research.

When the CCI ordered the probe in 2019_ it said Google appeared to have leveraged its dominance to reduce device makers' ability to opt for alternate versions of its mobile operating system and force them to pre-install Google apps.

The 750-page report finds the mandatory pre-installation of apps "amounts to imposition of unfair condition on the device manufacturers" in violation of India's competition law_ while the company leveraged the position of its Play Store app store to protect its dominance.

Play Store policies were "one-sided_ ambiguous_ vague_ biased and arbitrary"_ while Android has been "enjoying its dominant position" in licensable operating systems for smartphones and tablets since 2011_ the report says.

The probe was triggered in 2019 after two Indian junior antitrust research associates and a law student filed a complaint_ Reuters reported.

India remains a key growth market for Google. It said last year it would spend $10 billion in the country over five to seven years through equity investments and tie-ups_ its biggest commitment to a key growth market.