Tag: Competition Commission of India

CCI gives nod for internal reorganisation of Kalyani Group companies

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Competition Commission of India on Thursday said it has given green light to the internal reorganisation of Kalyani Group’s companies. The deal has been cleared under the green channel route.

Under this framework, a transaction that does not raise any risk of an appreciable adverse effect on competition is deemed to be approved on being intimated to the fair trade regulator.

The present transaction involves an internal re-organisation of nine entities of the Kalyani Group pursuant to a scheme of amalgamation and arrangement entered between these entities, as per the notice filed with the anti-trust regulator.

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The proposed combination is being undertaken with the aim to simplify the corporate holding structure of the company, CCI said.

In a release, the fair-trade regulator said the proposed combination is being notified under the green channel route.

“The proposed combination is effectively an internal restructuring and hence does not result in any horizontal, vertical, or complementary overlaps. The ownership and control of all the entities involved in the proposed combination remains unchanged both pre and post-internal re-organisation,” CCI said.

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Google vs CCI: Tech giant claims India’s antitrust order will harm users, increase smartphone prices

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Technology giant Google on Friday said the Competition Commission of India’s antitrust directives regarding how Android is licensed will increase harm to the users while also making smartphones less affordable. As per the order, Google will have to allow third-party app stores on its operating system, which has a 97 percent market share in India, as well as not force smartphone makers to use its own applications by default.

In a blog post, Google said the “CCI’s order strikes a blow at the ecosystem-wide efforts to accelerate digital adoption in the country”, while adding that it is “appealing these directions before Indian courts”.

It must be noted here that Google has been hit by or faces similar antitrust judgments by the competent authorities in the European Union and USA.

In the post, which is addressed directly to users, the tech giant said over the past 15 years, through Android’s free open source software and suite of high quality apps, Google has helped device manufacturers make smartphones more affordable by a vast margin. “Today, any user can get their hands on a fully functional smartphone at less than Rs 6,000 from numerous brands,” the company said.

Also read: Google vs CCI: Supreme Court agrees to hear Google plea seeking stay on penalty order

Google claimed that CCI’s order will:

• Expose users to increased cyberthreat if they use devices running “incompatible forks (versions) of Android” — essentially versions other than which the tech giant has licenses
• Raise the cost of smartphones as the onus of improving cybersecurity and protecting users will fall on original equipment manufacturers (OEMs) or smartphone companies
• Make it a skewed playing field for developers, especially the smaller ones, who may not have the resources to build and maintain apps across multiple Android forks.

Also read: Google vs CCI: Google fails to get interim relief in App store case

“While Google holds itself accountable for the apps on Play Store and scans for malware as well compliance with local laws, the same checks may not be in place for apps sideloaded from other sources,” the company added.

“This is sobering for innovation in the Indian digital ecosystem, whose greatest success stories are of small disruptors creating a better product and winning the user,” the company warned.

“India is at a juncture where we must come together to bring down barriers to access and make safe and secure smartphones available to all, supported by a flourishing digital ecosystem. Foundational disruptions at this stage could set us back years and undo the deep investments and effort made by OEMs, developers and the industry overall,” Google added.

Also read: Google warns Android growth in India will stall due to antitrust order

However, Rakesh Deshmukh, Co-founder and CEO of Indus OS, which positions itself as a competing Android-based app storefront to the Play Store, dismissed Google’s claim and said CCI’s ruling will, in fact, have the opposite effect.

“The CCI ruling against Google very clearly encourages software innovation, which will only help bring down the prices of smartphone devices, thus ensuring even further digital penetration as opposed to stalling the growth of the Android ecosystem by pushing up the device price point,” Deshmukh said.

He further accused Google of scuttling Indian entrepreneurs in the Android ecosystem with “unfair and restrictive Google policies”. “The CCI ruling against Google is a step towards ushering in the next phase of digital revolution in the country,” he added.

Also read: Google is bringing new features to older versions of Android

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Google pauses enforcement of in-house Play billing system in India post CCI order

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Google is “pausing” enforcement of the requirement for developers to use Play’s billing system for the purchase of digital goods and services for transactions by users in India while it reviews legal options, in the aftermath of the recent ruling by the CCI.

Last month, the Competition Commission of India (CCI) had slapped a penalty of Rs 936.44 crore on the internet major for abusing its dominant position with respect to its Play Store policies.

The regulator had also directed the company to cease and desist from unfair business practices as well as carry out various measures to address the anti-competitive issues within a defined timeline, according to an order.

“Following the CCI’s recent ruling, we are pausing enforcement of the requirement for developers to use Google Play’s billing system for the purchase of digital goods and services for transactions by users in India while we review our legal options and ensure we can continue to invest in Android and Play,” Google said in an update on help centre page.

Developers in India were given an extension until October 31, 2022 to comply due to unique circumstances with the payments landscape in the country.

“The requirement to use Google Play’s billing system applies for in-app digital content purchases for users outside of India,” Google added.

The recent Play Store policy ruling marked the second major CCI order against Google in a span of less than a week.

On October 20, the watchdog also imposed a penalty of Rs 1,337.76 crore on the company for abusing its dominant position in multiple markets in relation to Android mobile devices and ordered the internet major to cease and desist from various unfair business practices.

Also Read:India’s antitrust watchdog hits Google with Rs 1,337.76 crore penalty

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Key challenge for CCI is implementing amendments: Ex-chairman AK Gupta

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Competition Commission of India (CCI) will have to brace itself to operationalise path-breaking amendments, said A.K. Gupta, former chairman of CCI.

A parliamentary panel on finance is looking at the Competition Amendment Bill 2022 and the anti-competitive practices of Big Tech.

Among other measures, the proposed law seeks to regulate measures and acquisitions based on deal value thresholds.

Gupta said the new law proposes settlement and commitment, deal value threshold, leniency as well as regime. “Implementing the provisions of the new Competition Amendment Bill will be a challenge. The new CCI chief will have to hit the ground running due to the short implementation of time,” he said.

Also read: Govt appoints Sangeeta Verma as acting chairperson of CCI

He also said he didn’t see any ambiguity in deal value threshold. He said currently some mergers in the digital markets are not being able to be captured and the target entities command a significant market position because of control over tangibles.

“We would like to capture very few mergers in digital markets and would like to assess mergers that do not have substantial operations in India,” he said.

Also read: CCI slaps Rs 223.48-crore penalty on MakeMyTrip, Rs 168.88 crore on OYO

Talking about challenges in dealing with Big Tech, Gupta said that digital platforms have a decisive influence on online competition. They control the infrastructure, terms of access and have rule-setting power. “The power of digital platforms can have an adverse effect on the consumers and competition landscape. The challenge is to do market correction and with speed,” he said.

Last week, the CCI imposed a nearly Rs 2,500-crore penalty on Google for abusing its market dominance. The hefty fine on the tech major could have long-term implications for Big Tech companies.

Talking about that, Gupta said the CCI’s job is to make sure the competition landscape remains competitive. The CCI order will open a mobile ecosystem to competing apps of Google. “Competing indigenous apps were not getting a chance to flourish. Google was imposing its Google Pay billing systems and denying access to others. Third-party payment systems will now be able to compete,” he said.

He said the CCI has given behavioural remedies that are guidelines for other Big Tech companies. “If other Big Tech companies behave in a similar fashion then action can be taken against them as well. They should take a cue from the CCI orders against Google,” he said.

Watch video for the entire interview

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Google responds to CCI penalty, says committed to users, reviewing decision to evaluate next steps

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Competition Commission of India (CCI) on Tuesday imposed a penalty of Rs. 936.44 crore on Google for “abusing its dominant position with respect to its Play Store policies”, apart from issuing a cease-and-desist order.

The commission also directed Google to modify its conduct within a defined timeline, an official CCI statement read.

According to news agency ANI, Google responded on Wednesday by saying, “we remain committed to our users and developers, and we are reviewing the decision to determine the next step.”

Google’s spokesperson added, “Indian developers have benefited from tech, security, consumer protections & unrivalled choice and flexibility that Android and Google Play provide. By keeping costs low, our model powered India’s digital transformation and expanded access for hundreds of millions of Indians.”

The latest order comes five days after the commission imposed a Rs 1,337 crore penalty on the technology giant, citing a similar abuse of of its dominant position “in multiple markets of the Android ecosystem”, such as Play Store, Google Search, Google Chrome, YouTube, etc.

In Tuesday’s order, CCI said app developers depend on app stores for their livelihood and that “the availability of app store(s) is directly dependent on OS installed on a smart device”.

Also read: India’s antitrust watchdog hits Google with Rs 1,337.76 crore penalty

“An appreciation of the market dynamics in licensable mobile operating system in India makes it evident that Google’s Android OS has successfully reaped the indirect network effects. Google’s Play Store constitutes the main distribution channel for app developers in the Android mobile ecosystem, which allows its owners to capitalise on the apps brought to market,” CCI stated.

CCI said, based on its assessment, Google is dominant in the markets for “licensable OS for smart mobile devices and market for app stores for Android smart mobile OS, in India”.

“Google’s Play Store policies require the App developers to exclusively and mandatorily use Google Play’s Billing System (GPBS) not only for receiving payments for Apps (and other digital products like audio, video, games) distributed/sold through the Google Play Store but also for certain in-app purchases i.e. purchases made by users of Apps after they 
have downloaded/ purchased the App from the Play Store,” the order read, adding, “Further, app developers cannot, within an app, provide users with a direct link to a webpage containing an alternative payment method or use language that encourages a user to purchase the digital item outside of the app (anti-steering provisions).”

CCI noted that non-compliant developers are not permitted to list their apps on the Play Store and would lose out on potential customers.

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CCI further stated in its order that it has also examined allegations of exclusion of rival UPI (Unified Payments Interface) apps as effective payment options on Play Store.

“Google is found to be following discriminatory practices by not using GPBS for its own applications i.e., YouTube. This also amount to imposition of discriminatory conditions as well as pricing as YouTube is not paying the service fee as being imposed on other apps covered in the GPBS requirements. Thus, Google is found to be in violation of Section 4(2)(a)(i) and 4(2)(a)(ii) of the Act,” the order read.

Effecttively, CCI directs Google to:

• Allow, and not restrict app developers from using any third-party billing/ payment processing services
• Not discriminate or take adverse measures against apps using third party billing/payment processing services
• Not restrict end users from accessing and using, within apps, features and services offered by app developers. 

• Set out a clear and transparent policy on data that is collected on its platform, how it is used and shared
• Not discriminate against other apps facilitating payment through UPI in India vis-à-vis its own UPI app, in any manner. 


Also read: CCI constantly honing its toolkit to tackle digital market challenges: Chairperson

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India’s antitrust watchdog hits Google with Rs 1,337.76 crore penalty

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Competition Commission of India on Thursday said Google abused its dominant position in multiple markets in the Android ecosystem and levied a hefty Rs 1,337.76 crore penalty on the technology giant.

Further, CCI also directed Google to cease and desist from unfair business practices.

In a release, the Competition Commission of India (CCI) said it has also directed Google to modify its conduct within a defined timeline.

CCI imposes monetary penalty of ₹ 1337.76 crore on Google for abusing dominant position in multiple markets in the Android Mobile device ecosystem.
Press Release: https://t.co/sXXA0RvK51#Antitrust #AntitrustOrder #antitrustlaw #Google #CCI pic.twitter.com/FE5Yh8PWr4

— CCI (@CCI_India) October 20, 2022

“Smart mobile devices need an operating system (OS) to run applications (apps) and programs. Android is one such mobile operating systems which was acquired by Google in 2005. The Commission has examined various practices of Google w.r.t. licensing of this Android mobile operating system and various proprietary mobile applications of Google (e.g. Play Store, Google Search, Google Chrome, YouTube, etc.),” CCI said in the release.

CCI dismissed Google’s contention that it faced competitive constraints from Apple. “Apple’s business is primarily based on a vertically integrated smart device ecosystem which focuses on sale of high-end smart devices with state of the art software components. Whereas Google’s business was found to be driven by the ultimate intent of increasing users on its platforms so that they interact with its revenue earning service i.e., online search which directly affects sale of online advertising services by Google,” CCI noted.

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CCI constantly honing its toolkit to tackle digital market challenges: Chairperson

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Competition Commission is constantly honing its toolkit to meet the challenges emanating from digital markets and plans to hire data scientists and algorithm experts for its upcoming digital markets and data unit, the regulator’s chief Ashok Kumar Gupta said on Saturday.

In recent times, many cases related to technology markets have come up before the Competition Commission of India (CCI), including online marketplace platforms, app stores, payment gateways, online travel, food aggregators and social networking. “Such cases pertain to issues such as self-preferencing, leveraging, data-collection practices, deep discounting, etc. As market regulators, we cannot overlook the challenges that market power and business practices of gatekeeper platforms pose to other market participants — those who are competing with them and, more so, those who deal with them (and rely upon them),” he said.

Speaking at a conference organised by the CCI and industry body Assocham, Gupta stressed that the regulator is constantly honing its antitrust and merger toolkit to meet these challenges and, in doing so, benchmarking itself with global best practices. Among other efforts, the regulator is in the process of setting up a dedicated Digital Markets and Data Unit (DMDU).

“In addition to our staff from the law, economics, and finance streams, we plan to staff the unit with new professional profiles such as data scientists, algorithm experts, etc,” the CCI chairperson said. Since it started functioning 13 years ago, CCI has reviewed more than 1,200 anti-trust cases and 965 combination filings. Some of the key sectors where the regulator has made interventions are cement, tyre, real estate, pharma, entertainment, coal, and digital markets.

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The CCI chief emphasised that businesses need to adopt compliance practices that inspire trust between the regulator and the industry. “To make a trust-based regime sustainable, it is imperative that businesses adopt proactive competition compliance as an important element of corporate governance strategy. This will also help them compete globally.

“The Indian Competition Act encourages this mutual meaningful relationship between competition and corporate governance,” Gupta said, adding that with its ex-post enforcement regime, the regulator has been able to develop a substantive body of anti-trust jurisprudence.

Further, he said while enforcing the law, CCI is “conscious that onerous procedures and processes do not create regulatory cholesterol.” For simplifying procedures, several steps have been taken in the past few years that have helped ease compliances and facilitate speedy disposal. “The Commission’s endeavour has been to regulate but not burden businesses with unnecessary compliance,” he added.

He also highlighted various amendments proposed in the competition law, including introducing the provision for settlement and commitment. As part of boosting its outreach, CCI has so far opened three regional offices — in Chennai, Kolkata and Mumbai. According to Gupta, it is expected that the State Resource Persons Scheme will facilitate the framing of competition coherent policies at the state level, particularly in the area of public procurement.

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Setback for Meta as Supreme Court clears decks for antitrust probe into WhatsApp’s 2021 privacy policy

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Supreme Court on Fridat dismissed Meta Platforms’ plea seeking a stay on an anti-competition probe into the WhatsaApp’s 2021 privacy policy case.

While dismissing the plea, the country’s top court has held that India’s antitrust watchdog, the Competition Commission of India, cannot be restrained and and directed the agency to complete its probe at the earliest.

The Supreme Court has held that the CCI has the necessary jurisdiction to conduct the probe, as it an independent body with authority to look into violations of the Competition Act.

In its arguments, the CCI had submitted that WhatsApp is is abusing its market dominance and sharing user data with its parent company Meta — which also owns Facebook — for targeted ads.

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India’s antitrust watchdog orders another probe against Google

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Competition Commission of India (CCI) has ordered another detailed probe against tech giant Google for alleged unfair revenue sharing terms with respect to news content. The case will be clubbed with two other ongoing matters against the search engine major where the allegations are substantially the same, according to the Competition Commission of India (CCI).

The latest order has come on a complaint filed by the News Broadcasters & Digital Association. In January this year, CCI ordered a probe against Google on a complaint filed by the Digital News Publishers Association. Later, the Indian Newspaper Society also filed a similar case and that was clubbed with the first one.

Now, the regulator’s investigative arm’s Director General (DG) will submit a consolidated investigation report, the watchdog said in an order released on Friday. The News Broadcasters & Digital Association had alleged that its members are forced to provide their news content to Google in order to prioritise their weblinks in the Search Engine Result Page (SERP) of Google. As a result, Google free-rides on the content of the members without giving them adequate compensation, as per the complaint.

Also read: CCI orders antitrust probe against Google for alleged use of dominant position

Among others, it was alleged that Google exploited the dependency of the members on the search engine offered by Google for referral-traffic to build services such as Google News, Google Discover and Google Accelerated Mobile Pages (AMP). The search engine major provides news content to user through Google Search and through news aggregator vertical, Google News.

According to the complaint, in Google Search, users can either search directly for news through News Tab or receive news through result in SERPs. Google incorporated news content in its SERPs through featured snippets including ‘Top Stories’ carousels. However, the revenue distributed by Google to news publishers doesn’t compensate for the real contribution made by the association’s members to these platforms, it added.

In a four-page order, dated October 6 and released on Friday, CCI said the allegations are substantially the same as that of the matter which is already being probed by the regulator. CCI has directed the DG to club the matters and submit a consolidated investigation report. Cases where there is prima-facie evidence of violation of competition norms are referred by CCI to its investigation arm DG for a detailed probe.

The complaint has been filed against Alphabet Inc, Google LLC, Google India Pvt Ltd, Google Ireland Ltd and Google Asia Pacific Pte Ltd. The association consists of national and regional private news and current affairs broadcasters and digital news media entities as its members.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zee shares fall on report of media giant shutting down general entertainment channel

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The shares of Zee Entertainment Enterprises Ltd fell 0.6 percent on Monday after a report by Mint suggested that the media entertainment company is likely to shut down a major general entertainment channel.

Zee Entertainment and Sony Pictures have offered fresh concessions, including a proposal to shut down a major entertainment channel, to ease competition concerns and secure the antitrust regulator’s approval for their $10 billion merger, the Mint report said.

According to the report, two people with the knowledge of the development have said that on Friday, Zee offered to shut down a major general entertainment channel, with a massive 20-30 percent market share in the general entertainment channel space, in a submission to the Competition Commission of India (CCI).

The two media giants, Zee Entertainment and Sony Pictures Networks India Pvt Ltd, had announced a merger in December. As part of the deal, Zee Entertainment will hold 47.07 percent in the merged entity, while Sony India will hold a 52.93 percent stake.

CCI is concerned that the merged entity could become too huge, with humongous market position. The commission is also concerned about misuse by the merged entity as it could have as many as 92 channels under one umbrella. The commission had asked both companies to make written submissions before it takes a final decision.

In a separate development, Punit Goenka was reappointed the Managing Director while R Gopalan was reappointed as the Independent Director of the company.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow