LI Network
Published on: November 03, 2023 at 02:42 IST
Google and Apple have come under the watchful eye of India’s antitrust regulator, the Competition Commission of India (CCI), over allegations of abusing their dominance and engaging in anti-competitive practices.
The CCI is conducting investigations into Google’s alleged misuse of dominance in the smart television segment and Apple’s purported anti-competitive actions through its app store.
Chairman of CCI, Ravneent Kaur, confirmed the ongoing investigations, signaling the seriousness with which the regulator is approaching these allegations.
Regulation of large tech corporations is a global priority for competition regulators, and India has seen a surge in cases highlighting the need for these companies to align their practices with competition laws.
In Europe, the first group of gatekeepers has been identified for ex-ante regulation, and their compliance requirements will soon come into effect.
In India, similar considerations for an ex-ante framework are being discussed to prevent gatekeepers in the tech industry from causing market distortions. Competition regulators believe that once market dominance tips in favor of these gatekeepers, ex-post measures are insufficient to restore competitive market conditions.
The antitrust landscape in India is evolving rapidly, with the proposed Digital Competition Act aiming to create a fair and transparent digital ecosystem in the country.
CCI has been actively involved in disputes with major tech companies in recent years. Google’s agreement to modify certain practices related to the Android ecosystem in India was a notable victory for CCI.
While the matter is pending before the Supreme Court, Google and Apple now face another round of justifying and defending their practices in various business segments. The battle is far from over.
Despite the curbs, penalties, and fines, violations continue to occur as the allure of enhancing business profits remains strong in competitive environments.
Technology often outpaces the law, creating a veil of opacity that only dissipates as the law catches up with the violators. Investigations into competition law violations by tech giants are ongoing across jurisdictions, including abuses in news content by Google and app store practices by Apple.
The core issue behind these violations is self-preferencing, which is a natural inclination for businesses, but it is constrained by the fear of legal consequences.
Technology’s lead over the law provides an effective cover until understanding of the technology and legal measures catch up with the violators. Competition agencies worldwide are actively working to address this issue, with India’s deliberations on digital competition laws being a significant step in that direction.
Experts believe that CCI is updating its regulations to adapt to the rapidly changing digital landscape. These new rules establish clear criteria for evaluating the acceptability of acquisitions or mergers involving large companies and smaller ones, considering factors such as the smaller company’s presence in India based on user numbers and business activities.
These changes aim to simplify compliance with the rules and may lead to increased CCI reviews of mergers, especially in the tech industry, ensuring fairness for all participants in the digital marketplace and addressing potential data misuse.