Google has reached a settlement with the Competition Commission of India (CCI) regarding allegations of unfair business practices in the Android TV sector, agreeing to pay Rs 20.24 crore to the regulator. This comes after the company has been convicted of dominating the advertising technology market. The recent case marks the first settlement under the amended Competition Act, which introduced provisions for settlements and commitments in 2023. Following a complaint, the CCI ordered a thorough investigation in 2021. Eventually, Google proposed to settle the case, prompting the CCI to review the settlement offer. As part of the "New India Agreement," Google will now provide a standalone license for the Play Store and Play Services specifically for Android smart TVs in India. This change eliminates the requirement to bundle these services or enforce default placement conditions, as stated in a press release on Monday.
Additionally, by waiving the need for valid Android Compatibility Commitments (ACC) for devices shipped to India that do not include Google apps, original equipment manufacturers (OEMs) can now sell and develop incompatible Android devices without breaching the Television App Distribution Agreement (TADA), according to the CCI's announcement.
Google in a statement said, "Google is committed to abiding by applicable local laws in every country where we operate and are grateful to the CCI for the opportunity to engage and present our case. We also thank the CCI for instituting processes which enable constructive engagements between companies and the market, allowing for continued investment and growth".
The regulator confirmed that it has accepted this settlement proposal.
In March 2023, the Competition Commission of India introduced new rules for settling such cases. According to these rules, companies found to have engaged in unfair competition can receive a 15 percent discount on the fines if they choose to settle. This approach encourages companies to address regulatory issues proactively and even make changes voluntarily before an investigation is finished. In Google’s situation, since the investigation is already complete, they proposed a settlement that includes a reduced fine. The goal of this system is to resolve antitrust problems more quickly and avoid lengthy court battles.
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