Google Settles Antitrust Case in India Over Smart TV App Bundling

In a significant move, Google has agreed to pay ₹20.24 crore (approximately $2.38 million) to settle a long-running antitrust case in India. The settlement, which addresses claims of anti-competitive behavior, marks a historic resolution under the country’s amended Competition Act of 2023, which now allows companies to negotiate settlements rather than endure lengthy legal disputes.

The case dates back to 2020, when the Competition Commission of India (CCI) initiated an investigation into Google’s practices related to its Android operating system on Smart TVs. According to a statement from the CCI, Google was accused of forcing TV manufacturers to pre-install its apps, such as YouTube and the Google Play Store, while also blocking them from using modified versions of Android—referred to as “forked” versions. The regulator argued that this practice stifled innovation and limited consumer choice in India’s burgeoning smart TV market.

As part of the settlement, Google has agreed to implement a new five-year licensing agreement with TV manufacturers. This “New India Agreement” will allow manufacturers to install the Play Store and Google Play Services on their devices without the obligation to pre-install YouTube or any other Google apps. TV makers will also now have the option to develop Android-based smart TVs independent of Google’s ecosystem.

Related: India’s Antitrust Watchdog Clears Google Settlement in Android TV Case

The settlement could lead to significant changes for consumers, offering them the possibility of more diverse smart TV software options and a greater variety of devices that are not overwhelmingly reliant on Google’s app suite. This could be especially impactful in India’s rapidly growing $6 billion smart TV market, where new players such as JioTele OS are emerging to challenge the established tech giants.

However, the settlement was not without its controversies. Although the majority of CCI members approved the deal, one member, Anil Agrawal, dissented. He argued that the settlement does not go far enough, as the previous contracts between Google and TV manufacturers remain in place. In Agrawal’s view, this means manufacturers could still face pressure to maintain the full app bundle under older agreements, undermining the potential for true competition.

Despite this dissent, the settlement is seen as a step toward enhancing competition and fostering a more diverse and open market for smart TV software in India, a country where the demand for such devices continues to rise sharply.

Source: TechLoy