Google Pays Rs 1,338 Cr Penalty To India's CCI In Android Case

May 2, 2023 - 19:30
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Google Pays Rs 1,338 Cr Penalty To India's CCI In Android Case

Google has paid the entire penalty amount of Rs 1,337.76 crore to the Indian regulators in response to the Competition Commission of India's (CCI) order to penalize the tech giant for exploiting its dominant position in the Android market. This is reportedly the first case of a Big Tech company paying a penalty to Indian regulators as the government aims to implement the new Digital India Act.

Google had earlier announced its compliance with the CCI's directives for Android and Play, stating that it would be making significant changes for India. The CCI had also imposed a penalty of Rs 936.44 crore on Google in a separate case for abusing its dominant position with respect to its Play Store policies.

In response to Google's announcement of implementing its new Google Play payments policy, the Alliance of Digital India Foundation (ADIF) expressed concern over the policy change and demanded that the new policies be put on hold. Google's charging of a nearly 30 percent service fee on app developers is expected to have a significant impact on the Indian startup ecosystem.

According to reliable sources, Google has deposited the entire penalty amount in the Consolidated Fund of India within the 30-day deadline given by the National Company Law Appellate Tribunal (NCLAT) in its order. The payment marks a significant step towards compliance with the Indian regulatory framework and highlights the growing importance of India's digital market.

The Indian government has been working towards establishing a regulatory framework to ensure fair competition in the digital market. The proposed Digital India Act aims to address concerns related to data protection, privacy, and market competition. The Act is expected to bring greater transparency and accountability to the digital space, making it easier for companies to navigate the Indian regulatory landscape.

As India's digital market continues to grow, the role of regulatory bodies like the CCI is becoming increasingly important in ensuring fair competition and protecting the interests of consumers and startups. The payment of the penalty by Google is a positive development towards creating a level playing field in the Indian digital market and sets an important precedent for other Big Tech companies operating in India.