Print Friendly, PDF & Email

CCI probes Google for ‘unfair’ business practices

Topics Covered: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.

CCI probes Google for ‘unfair’ business practices:


Context:

The Competition Commission has ordered a detailed probe against Google for alleged anti-competitive practices in the smart television operating systems market in the country.

What’s the issue?

CCI found that Google was dominant in the relevant market for licensable smart TV device operating systems in India. It also said that prima facie mandatory pre-installation of all the Google applications under Television App Distribution Agreement (TADA) amounts to imposition of unfair conditions on the smart TV device manufacturers. This is in contravention of Section 4(2)(a) of the Competition Act.

  • Section 4 of the Act pertains to abuse of dominant position.

About Competition Commission Of India:

The Competition Commission of India (CCI) was established under the Competition Act, 2002 for the administration, implementation and enforcement of the Act, and was duly constituted in March 2009. Chairman and members are appointed by the central government.

Functions of the commission:

  1. It is the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade in the markets of India.
  2. The Commission is also required to give opinion on competition issues on a reference received from a statutory authority established under any law and to undertake competition advocacy, create public awareness and impart training on competition issues.

The Competition Act:

The Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) was repealed and replaced by the Competition Act, 2002, on the recommendations of Raghavan committee.

  • The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and M&A), which causes or likely to cause an appreciable adverse effect on competition within India.

 

Insta Curious: 

Do you know what Tied Selling is? Read Here

 

InstaLinks:

Prelims Link:

  1. About CCI.
  2. Highlights of the Competition Act and amendments to it.
  3. About NCLT and its jurisdiction.

Mains Link:

Discuss the roles and functions of CCI.

Sources: the Hindu.