Article:
The Competition Commission of India (CCI) has recently launched an investigation into allegations lodged against Alphabet Inc’s Google. The tech giant is accused of misusing its market position to push its mobile payments app, Google Pay, in the Indian market. This article provides essential key points related to these allegations, the background of earlier antitrust inquires into Google, and a brief overview of India’s anti-competitive laws.
The Complaint Against Google
The accusation suggests that Google gives preferential treatment to Google Pay on its Android app store, giving it an unfair advantage over rival apps. Google Pay is a digital wallet platform that enables users to make transactions, perform inter-bank funds transfers and process bill payments. It competes directly with Softbank-backed Paytm and Walmart’s PhonePe, which are both popular in India. Facebook’s WhatsApp also has plans for a similar service shortly. Google is still yet to respond to these allegations but is expected to do so in due time.
The Competition Commission of India’s Role
The CCI may either direct its investigations unit to conduct a comprehensive probe into the allegations or dismiss the case if it finds the accusations baseless. Following this, Google will appear before the CCI, which will then determine the next steps.
Google’s Past Antitrust Challenges in India
This incident marks Google’s third significant antitrust challenge in India. Prior to this, in 2018, the CCI fined Google $21 million for ‘search bias’ – alleged abuse of a dominant position in the online search market through practices leading to search bias and manipulation. In 2019, another investigation was launched to look into claims that Google was leveraging its dominant position to limit smartphone manufacturers’ ability to choose alternate versions of its Android mobile operating system.
Understanding Antitrust Law in India
Antitrust law, also known as competition law in India, is designed to protect trade and commerce from unfair restraints, monopolies, and price-fixing. It facilitates fair competition in an open-market economy. The Competition Act, 2002 serves as India’s antitrust law, replacing the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) based on recommendations from the Raghavan committee.
Details of The Competition Act, 2002
This act was passed in 2002 and later amended by the Competition (Amendment) Act, 2007. It aligns with modern competition laws philosophy and prohibits anti-competitive agreements, abuse of dominant position by enterprises, and regulates combinations that are likely to have a significant adverse effect on competition within India.
About The Competition Commission of India (CCI)
The CCI is a statutory body charged with enforcing the Competition Act, 2002. It comprises a Chairperson and six Members appointed by the Central Government. The commission aims to eliminate practices having adverse effects on competition, promote and sustain competition, protect consumer interests, and ensure freedom of trade in India.
The commission can also provide opinions on competition issues referred to by a statutory authority and undertake competition advocacy, public awareness creation, and training on competition issues.
