Micromax, an Indian multinational manufacturer of consumer electronics, including mobile phones has appealed against the Competition Commission of India (CCI) order in the Android case that saw the competition watchdog levy ₹1,337 crore penalty on tech giant Google for its anti-competitive practices.
The National Company Law Appellate Tribunal (NCLAT) will hear the matter for admission on January 10, sources close to the development said.
Micromax has contended that the CCI ruling in the Android case has the effect of “condemning” its business without affording any opportunity of hearing its viewpoints on the matter.
Micromax move to prefer an appeal against the CCI’s October 25 order has evoked “surprise” in several quarters given that the CCI order was perceived to help OEMs as it would give them a choice to preinstall Apps of their preference in devices.
Some economy watchers even contend that Micromax might have been propped up by Google to drum up support in favour of latter’s appeals against CCI orders.
Main grounds of appeal
Micromax is of the view that implementation of CCI order could result in a change in the existing bundled services offered by Google. Google would charge a price for its Android OS and various individual Apps. This would result in high input costs to Micromax that making smartphones inaccessible to the public, according to Micromax.
This would adversely affect not only the business of Micromax as suppliers of low cost smartphones, but will also adversely affect Centre’s objective of achieving high penetration of smartphone enabled services, according to Micromax.
Another ground of appeal related to Android forks, which Micromax contends would inhibit seamless portability and transfer of data. Due to various versions of Android OS, Apps, the smartphone OS and the smartphone device itself will have increased instances of lack of compatibility, according to Micromax’s memorandum of appeal. Smartphones may not work as a smartphone due to various and inconsistent Android OS and Apps.
Micromax contends that the CCI’s non-monetary directions on Google are detrimental to the interests of this Indian multinational and the end users.
Also, compromising user experience as a result of incompatible Apps and phones will severely impact the sale of Micromax’s smartphones, it was submitted.
What CCI order said
Among the several remedial directions issued by CCI in the Android case, there is one on device manufactures, giving them the choice of Operating System and Apps that best suit them and permitting access of Apps through side loading.
Infact, one of the main anti competitive charge against Google was that it used its dominant position to make it mandatory that OEMs pre-install its entire Google Mobile Suite – which include Search, Chrome, YouTube, Google Play store, Maps, and Photos, among others – on their phones and place them prominently.
Android operating system powers 97 percent of 600 million smartphones in India, making it Google’s largest market by users, as per Counterpoint Research.
CCI had in its October 20 order made a case for allowing handset makers to install alternative versions of Android (Android forks) without pressure or incentive from Google.
Google must not deny access to its play services APIs to disadvantage OEMs, app developers and it existing or potential competitors, the CCI had said. CCI also wants Google to allow developers to distribute their app stores through Google playstore, the Competition watchdog had said.
Apart from imposing monetary penalty, the competition commission has issued cease and desist orders against Google from indulging in the found anti-competitive practices.
