CCI probes possible anti-competitive practices by Google in India
14 Aug 2012
The Competition Commission of India (CCI) has launched a probe into alleged anti-competitive practices by search engine giant Google, minister of state for corporate affairs R P N Singh, said in a written reply in parliament.
The CCI had received a complaint from an NGO, Consumer Unity & Trust Society (CUTS) International, about Google contravening competition rules in the country, he added.
CUTS, a Jaipur-based NGO, had last August filed a complaint with the CCI, asking it to probe whether Google had initiated action which amounted to an abuse of dominance in violation of section 4 of the Competition Act.
''We at CUTS are great admirers of Google and users of its services and do believe it has done great things for the development of search engines worldwide, made the 'Information Age' a practicality where information is delivered at the click of a button, made the world a safer and better place, and has a tremendous record in innovation and producing goods and services which greatly enhance the quality of citizens lives,'' the NGO mentioned in its complaint. ''Nevertheless, we do also believe that Google is not the only search engine in the world and that true democracy consists of letting all the citizens on the internet flourish, not just Google.''
Citing the ongoing investigations against Google in different parts of the world, the NGO said the company should not be allowed to use ''its market power in the search engine and online advertising market to affect the growth of the Indian search and advertising markets as well as the related e-commerce markets.''
The acquisitions made by Google in India need to be monitored closely as it may try and enter these fast growing markets by buying existing online shopping portals and could undertake anti-competitive activities, the NGO said.
The growing popularity of smartphones and applications had ensured the widespread use of Android – Google's operating system for mobile devices – and could be a potential way to lock in customers, said the CUTS International complaint.
''For instance, withholding the system's latest version from handset makers that favour rivals services could be a potent stick for Google to wield,'' is said. ''It is precisely to prevent such exclusionary practices that the competition authority needs to conduct this investigation. Just as the Windows operating system came to dominate personal computer use, so too Android may dominate mobile smartphone use.''
