The Hindu: Published on 12th August 2025.
Why in News?
On August 8, 2025, the Supreme Court admitted appeals from Alphabet Inc. (Google’s parent company), the Competition Commission of India (CCI), and the Alliance Digital India Foundation (ADIF) over a National Company Law Appellate Tribunal (NCLAT) ruling on Google’s alleged abuse of dominance in the Android ecosystem.
Detailed hearings are scheduled for November 2025.
Background:
In 2020, CCI launched a probe after complaints from developers and industry bodies that Google misused Android’s market dominance to:
Enforce Google Play Billing System (GPBS) for in-app purchases, charging 15–30% commission.
Exempt its own apps (like YouTube) from GPBS, giving them cost advantages.
Require phone makers to pre-install Google apps (Search, Chrome, YouTube) to access the Play Store.
In 2022, CCI fined Google ₹936.44 crore and ordered measures to decouple GPBS, improve transparency, and stop using billing data for competitive advantage.
Google’s Stand:
Android is open-source; OEMs can use it without Google’s proprietary services.
Pre-installed apps improve convenience, not restrict competition.
GPBS ensures safe transactions, fraud prevention, and supports developer growth.
Commission rates match industry norms; Indian apps like Paytm and PhonePe thrive.
Exempting in-house apps reflects business model differences, not bias.
NCLAT’s Verdict (March & May 2025):
Upheld: Mandatory billing and app bundling as abuse of dominance.
Reduced Fine: ₹936.44 crore → ₹216.69 crore (considered proportionate).
Modified Remedies: Initially removed some CCI directives but later restored two:
- Transparency in billing data.
- Ban on using billing data to benefit Google’s own services.
Outcome left all sides unsatisfied—Google sought full reversal, CCI wanted original penalties, ADIF argued leniency.
Key Issues Before Supreme Court:
Scope of “abuse of dominance” in digital platforms.
Balancing consumer choice vs platform consistency.
Extent of regulatory intervention in global tech operations.
Possible Impacts:
Consumers-
Pro-CCI: More payment options, lower prices, better privacy, fairer rankings.
Pro-Google: Uniform Android experience, fewer compatibility issues.
Smartphone Manufacturers-
Pro-CCI: More flexibility in pre-installing competing apps, Android customization.
Pro-Google: Predictable licensing model.
Startups & Developers-
Pro-CCI: Reduced GPBS dependence, more visibility for local apps.
Pro-Google: Stable infrastructure but limited market influence.
Google-
Adverse verdict may set global precedent and force changes to Android’s business model.
Road Ahead:
- Supreme Court will examine both legal definitions under competition law and economic realities of platform markets.
- If CCI wins: India could emerge as a leading Big Tech regulator outside the EU.
- If Google wins: Status quo remains in Android’s market control.
