The expansion of Google’s Android ecosystem in India is on the verge of stalling due to an antitrust order requiring the company to change how it markets the platform, according to a Supreme Court challenge seen by Reuters.
In October, the Competition Commission of India (CCI) fined Alphabet Inc.-owned Google $161 million for abusing its monopoly over the Android operating system, which runs 97% of smartphones in India. The CCI also requested that Google modify the limitations placed on smartphone manufacturers with regard to pre-installing apps.
Google has previously stated that the CCI decision will force it to alter its long-standing business model, but its Indian Supreme Court filing quantifies the impact and describes the adjustments the company will have to make.
According to Google, it will be necessary to amend its current agreements with more than 1,100 device manufacturers and thousands of app developers, as well as to introduce new license agreements.
The filing by Google, which is confidential, stated that “the remedial directions are on the verge of bringing to a halt the tremendous advancement in growth of an ecosystem of device manufacturers, app developers, and users.”
“Google will have to make significant adjustments to the mobile Android platform, which has been in use for the past 14–15 years.”
A representative for Google declined to comment.
The Indian ruling has alarmed Google because it is believed to be more expansive in its remedies than the European Commission’s historic 2018 decision for placing unjustified restrictions on manufacturers of Android mobile devices. In that case, Google has contested the record-breaking $4.3 billion fine.
Google licenses its Android operating system to smartphone manufacturers, but detractors claim that it imposes anti-competitive restrictions like the requirement to pre-install Google’s own apps. These agreements, according to the company, help to keep Android free.
The CCI ordered Google to stop preventing Android phone users in India from uninstalling its apps in October; at the moment, pre-installed apps like Google Maps and YouTube cannot be removed from Android phones.
The CCI further stated that the pre-installation of Google search services, the Chrome browser, YouTube, or any other Google applications “shall not be linked with the licensing of Google’s Play Store.”
Google claimed in its court filings that “no other jurisdiction has ever requested for such far-reaching changes based on similar conduct.”
The remedial measures ordered by the CCI, which take effect on January 19, have been requested to be suspended by the company in court documents dated January 7. Probably within the next few days, the case will be heard.
Additionally, according to Reuters, Google has claimed in court documents that the CCI’s investigation unit copied portions of a European 2018 decision against the U.S. company. These accusations have received no response from the CCI or the European Commission.