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Google fined Rs 1,337.76 crore fine for unfair business practices

The Competition Commission of India on Thursday imposed a penalty of Rs 1337.76 crore on Google for abusing its dominant position in multiple markets in the android mobile device ecosystem, apart from issuing cease and desist order. The commission also directed Google to "modify its conduct within a defined timeline".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 CCI said Google had argued about the competitive constraints being faced from Apple Inc.

The CCI said the differences in the two business models that affect the underlying incentives of business decisions are that Apple's business is primarily based on a vertically integrated smart device ecosystem, which focuses on sale of high-end smart devices with advanced software components. Google operates and manages the Android OS (operating system) and licences its other proprietary applications. The OEMs (original equipment manufacturers) use this OS and Google's apps in their mobile devices.Accordingly, they enter into multiple agreements to govern their rights and obligations, such as Mobile Application Distribution Agreement (MADA).


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