MANU/CO/0089/2022

IN THE COMPETITION COMMISSION OF INDIA
NEW DELHI

Case No. 39 of 2018

Decided On: 20.10.2022

Appellants: Umar Javeed and Ors. Vs. Respondent: Google LLC and Ors.

Hon'ble Judges/Coram:
Ashok Kumar Gupta, Chairperson, Sangeeta Verma and Bhagwant Singh Bishnoi

ORDER

Order under Section 27 of the Competition Act, 2002

1. The present Information has been filed by Mr. Umar Javeed, Ms. Sukarma Thapar and Mr. Aaqib Javeed (the, 'Informants') under Section 19(1)(a) of the Competition Act, 2002 (the, 'Act') against Google LLC and Google India Private Limited (collectively, 'Opposite Parties'/'Google'), alleging inter alia abuse of dominant position by Google in the mobile operating system related markets in contravention of the provisions of Section 4 of the Act. The Informants are stated to be consumers of the Android based smartphones.

About the OPs

2. Google LLC, formerly Google Inc., is stated to be a Delaware limited liability company and wholly owned subsidiary of Alphabet Inc. (Alphabet), a holding company. Google provides a variety of information technology related services, with a principal focus on search, advertising, operating systems, platforms, and enterprise. Google offers an internet search service. Google's search service is available on websites (such as www.google.com), through partner sites that include Google search technology, and as an application/app. Google provides advertising solutions to help businesses market and advertise their products. Google's core business activities concern Chrome, Gmail, Google Drive, Google Maps, Android, Google Play, Search, and YouTube.

3. Further, Google India Private Limited ('Google India') is an indirect subsidiary of Google LLC (and an indirect wholly owned subsidiary of Alphabet Inc.). Since 01.04.2016, Google India has been stated to be a non-executive reseller of online advertising space in India, appointed by Google Asia Pacific Pte. Ltd., Singapore (prior to that time it was the non-exclusive reseller of online advertising space appointed by Google Ireland Limited). In its capacity as a reseller, Google India undertakes marketing and promotion activities for certain Google products that are monetized using Google advertisements. In addition, it also provides a limited set of Information Technology Services ('IT services') and Information Technology Enabled Services ('ITES') to other group companies.

Facts as stated in the Information

4. The Informants stated that Android is an open-source mobile OS i.e., it can be freely used and developed by anyone. Android Open Source Project (AOSP) is the fundamental Android source code subject to a basic license. The majority of smartphones and tablet manufacturers in India were stated to use the Android operating system in combination with a range of Google's proprietary applications and services i.e., the Google Mobile Services (GMS).

5. The Informants further averred that GMS is a collection of Google applications and Application Programme Interface (APIs) that help support functionality across devices. As per the Informants, GMS includes wide range of Google apps such as Google Maps, Gmail, and YouTube which are available only through GMS and cannot be downloaded separately by device manufacturers. In order to obtain the right to install these applications and services on their Android devices, manufacturers need to enter into certain agreements with Google. The Informants also alleged that end-users cannot avail such services directly.

6. The Informants further stated that depending upon which "Android" device OEMs/device manufacturers want to offer, they have to sign one or more agreements i.e., (a) Android without GMS: If an OEM wants to manufacture a 'bare" Android device, it needs to only pass technical tests and accept the Android License Agreement but in bare Android devices, OEMs are not permitted to include any of the GMS such as Google Maps, Gmail and YouTube, and (b) Android with GMS: In order to obtain GMS, an OEM has to enter into two additional agreements with Google (i) Mobile Application Distribution Agreement ("MADA") and (ii) Anti Fragmentation Agreement ("AFA").

7. The Informant also delineated four distin........