Anti-monopoly rules Archives - Gizmochina

Google May Face Anti-competitive Lawsuit Over Its Digital Ad Market Dominance

Sean — Tue, 24 Jan 2023 09:50:25 +0000

The Indian Supreme Court had given Google a deadline to comply with its recent ruling. However, the company had failed to comply, which means that it could be facing a new lawsuit over its position that it holds in the digital ad market.

For those unaware, the Search Engine giant looked to the Supreme Court to block a ruling made by the CCI (Competition Commission of India) back in October 2022. The ruling in question would’ve forced the brand to change the way it licenses its Google Mobile Services (GMS) version of Android. As of right now, the company demands that smartphone maker who license the Android OS with GMS have to pre install certain Google apps like the Chrome browser, its search engine, YouTube, and others.

However, the CCI had deemed this has anti-competitive behavior. Furthermore, it also wanted the company to allow Android users in India to have the option uninstall certain apps like Google Maps or YouTube from their smartphones. While the Android platform is an open source system, the GMS version comes packed with Google apps and even the Play Store. Unfortunately for Google, the Indian Supreme Court dropped the case back to a lower tribunal and even gave the company until January 26 to change its method of licensing Android.

This isn’t the only legal trouble that the brand is facing at the moment. Apparently, the US Department of Justice is also looking to sue the company over its massive share of digital advertising market. This would mark the second federal antitrust complaint that is faces since 2020, which was also filed by the Justice Department over Google’s dominance in the online search market. The government wants to know how the company acquires and maintains its dominance in search and digital advertising.

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Apple Hit With a $17 Million Fine by the Russian Anti-Monopoly Agency

Sean — Wed, 18 Jan 2023 10:51:59 +0000

Apple has just been hit with another multi million dollar fine. The company is facing a 17.4 million US Dollar fine in Russia by the nation’s federal anti monopoly service (FAS) for abusing its leading position in the local market.

The latest fine imposed on the Cupertino based giant follows after a ruling made in July 2022. At that moment, the agency found that the iPhone maker was in breach of local laws with its App Store rules. These rules had forced developers to use only the payment system that was provided by the company. In other words, the FAS basically ruled that Apple was taking advantage of its market dominance in the region.

As per an official statement, the regulator stated that “App Store rules prohibited iOS app developers from informing in-app customers about the possibility to pay for purchases outside of the App Store, as well as from using alternative payment methods. The company demanded that developers remove links to their own Internet sites and change the functionality of the application to prevent registration forms from leading to external sites.”

Apart from this, a similar ruling was made by the FAS last July against another tech giant, Google. It is still unclear how the agency will enforce this fine, since Apple has already announced its withdrawal from Russia following the Ukraine invasion. So stick around for more updates regarding this matter.

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Google breaks silence on ₹1337 crore ($162 million) anticompetitive fine in new statement

Sudhanshu — Mon, 16 Jan 2023 02:24:19 +0000

In October, the Competition Commission of India (CCI) imposed a fine of Rs. 1337.76 crores ($161.95 million) on Google, a subsidiary of Alphabet Inc., for abusing its monopoly over Android. The CCI also requested that Google lift its prohibitions on smartphone manufacturers pre-installing apps.

The National Company Law Appellate Tribunal (NCLAT) refused to grant a stay, thus on January 11 the Supreme Court agreed to hear Google’s appeal for a hearing regarding the delay of a further Rs 1,337 crore penalty order by CCI on January 16.

Google has now produced a statement in advance of the court proceedings that enables users and stakeholders to fully grasp the significance of the issues at hand. The company said that the CCI’s antitrust decision “strikes a blow” to the ecosystem-wide initiatives to hasten the adoption of digital technology in the nation.

With more and more people going online, Google believes that its open-source and free Android is playing a critical role in lowering the cost of cell phones and accelerating India’s digital transformation. In relation to the app issue, Google states:

“For a country like India, where the cost of adoption is the biggest barrier to digitisation, this has had profound implications. More users have incentivised more developers, and each of those developers achieve immediate scale by writing a single app for Android.“

The availability of Play Services APIs to OEMs, app developers, and rivals for the development of forked Android versions was also addressed by Google in response to CCI remarks. Google claims that the Android remedies mandated by the CCI will expose users to more privacy and danger online. The company said:

“Devices built on incompatible ‘forks’ would prevent Google from securing those devices, as these versions will not support the security and user safety features that Google provides. Lack of robust and consistent security upgrades will leave the users of those devices exposed to cybercrime, bugs, and malware – which is most troubling for the millions of new internet users who are especially vulnerable.”

Google fined Rs. 1337 crore ($162 million) for anticompetitive activities in India by CCI

Sudhanshu — Fri, 21 Oct 2022 07:47:50 +0000

Google has been fined $161.95 million (Rs. 1337 crores) by the competition commission of India (CCI) on Thursday for harming the competition with its present Android market strategy in India. The Commission also instructed Google to alter its behavior within a certain time frame.

The CCI said that “Google used its dominance in markets like online search and Android app stores to safeguard its programs like Chrome and YouTube in mobile Web browsers and online video hosting.”

The Commission examined Google’s licensing practices for Android and its own mobile apps in this case (like Play Store, Google Search, Google Chrome, YouTube, etc.) and prohibited Google from entering into revenue-sharing agreements with smartphone manufacturers since they aided in Google’s monopolization of the search service to the complete exclusion of competitors.

In 2019, an Android-related complaint was made by two young Indian antitrust research associates and a law student. The Indian action is comparable to the $5 billion fines Google paid to European regulators for pressuring manufacturers to pre-install their apps on android smartphones.

Google has faced similar lawsuits in the past where CCI had penalized Google Rs. 135.86 crores in 2018 for search bias. In addition, the Indian tech market is becoming more competitive, and the American company is being sued for antitrust violations. The competition watchdog is looking into Google’s in-app payments and smart TV business.

The Commission opined that the markets should be allowed to compete on merits and the onus is on the dominant players (in the present case, Google) that its conduct does not impinge this competition on merits. By virtue of the agreements discussed above, Google ensured that users continue to use its search services on mobile devices which facilitated un-interrupted growth of advertisement revenue for Google.

The Commission assessed Google a provisional fine of Rs. 1337.76 crores as a result of its violation of Section 4 of the Act. Google has 30 days to submit the necessary financial data and any supporting documentation.

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Apple faces backlash from EU for limiting 3rd party access to Apple Pay NFC

Sean — Tue, 03 May 2022 09:48:01 +0000

The European Union has officially objected to Apple yet again. This time, the European Commission has issued a Statement of Objections to the company for limiting third party access to its Apple Pay NFC system.

According to a MacRumors report, the Cupertino based giant is facing backlash for restricting third party payment services from accessing the NFC payment feature on its iPhones. In other words, the brand is basically restricting competition in mobile wallets on the iOS platform as a whole. The European Commission also added that further investigation will be commenced before any actions are taken against the company.

The original statement reads, “The European Commission has informed Apple of its preliminary view that it abused its dominant position in markets for mobile wallets on iOS devices. By limiting access to a standard technology used for contactless payments with mobile devices in stores (‘Near-Field Communication (NFC)’ or ‘tap and go’), Apple restricts competition in the mobile wallets market on iOS.” Furthermore, the European Commission’s Executive Vice President Margrethe Vestager said that the access to NFC is a requirement for any of Apple’s competing mobile wallet services

She further added that “Developing a mobile payment application is costly. Investment may only be worth it if developers can reach both Apple and Android customers. Evidence on our file indicates that some developers did not go ahead with their plans as they were not able to reach iPhone users. This behavior stifled innovation and prevented competition in the mobile wallet market. As a result, European consumers have little choice of mobile payment solutions when paying in shops.” In its defense, Apple cited security risk as the reason for limiting NFC access but the regulator’s investigation has not found any evidence of said risk.

China bans digital music platforms from signing exclusive copyright deals

Sean — Fri, 07 Jan 2022 12:03:33 +0000

The copyright authority in China has just announced that digital music platforms are no longer allowed to sign exclusive copyright deals, apart from certain exceptions. The announcement was shared earlier this week and arrives as the latest efforts from Beijing to crackdown on digital companies.

According to a Reuters report, the National Copyright Administration of China (NCAC) shared the order on Thursday during a meeting in Beijing. Notably, this meeting included some major digital music platforms, along with other known record and songwriting copyright based firms. The move from the copyright authority is the latest efforts of Chinese regulators in cracking down on the nation’s tech industry. The steps from the Chinese government seek to address growing issues like monopolistic behavior, unfair competition and consumer rights, which has also been widely debated in western regions like Europe.

Just last year, Tencent Holdings announced that it had ended all exclusive music copyright deals following an order from the Chinese regulator. The intervention from the authorities arrived due to Tencent reportedly holding access to more than 80 percent of exclusive music libraries. In other words, it held an almost complete monopoly in the market and could leverage upstream copyright parties to restrict the entry of new players in the market.

Unfortunately, it is unknown which companies were involved in this recent meeting, although, known brands like Xiaomi, China Mobile, and even Netease own popular streaming services in the Asian country, since global streaming services like Spotify are banned in Mainland China. NCAC added that “The talks emphasized that record companies, songwriting copyright companies and digital music platforms should … settle payment according to a guaranteed sum plus a share of actual usage, and should not sign exclusive copyright agreements except under special circumstances.”

Apple pushes back against sideloading of iOS applications

Sean — Thu, 14 Oct 2021 12:01:12 +0000

Apple has recently been facing pressure from regulators and rivals over its control over its iOS App Store. Now, the company has published a new document that showcases its defensive stance on the subject, which also warns of the hazards of allowing sideloading of iOS applications.

According to the 31 page long document with the title “Building a Trusted Ecosystem for Millions of Apps, A threat analysis of sideloading”, the Cupertino based giant shared a that “Some are demanding that Apple support the distribution of apps outside of the App Store, through direct downloads or third-party app stores, a process also referred to as ‘sideloading. Supporting sideloading through direct downloads and third party app stores would cripple the privacy and security protections that have made iPhone so secure, and expose users to serious security risks.”

In other words, Apple is strictly against bringing in competition due to these concerns, which it has also told US lawmakers as well. As of right now, the iPhone maker has even voiced out concerns of being forced by the European Union to allow third party app stores and direct download of apps by the user. However, there is a major flaw in Apple’s argument against “sideloading.” As pointed out by TheRegister, the brand refers to sideloading as both the user directly downloading and installing apps and third party app stores.

Although, this is not the case as only the former classifies as side loading and the two scenarios are not equal to one another. Generally speaking, “sideloading” is when the users installs an app on their device without a trusted intermediary that performs some oversight function. Or simply put, installing apps that are not from an official source. This means that installing an app from an unverified website is not similar to downloading an app from an app store from another rival company like Google, Epic Games, or Microsoft, which Apple is clearly against to hold onto its monopoly.

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Google and Apple app stores may face new regulations in Australia: Report

Sean — Wed, 28 Apr 2021 12:03:51 +0000

Earlier this week, the Australian competition watchdog might soon have Apple and Google address their dominating market power with their app stores, namely iOS App Store and the Play Store.

According to a Reuters report, these major tech giants might have regulations if they do not make changes regarding this matter. For those unaware, both Apple and Google have been facing pressure from various governments across the globe due to their major market dominance. Both firms charge developers and other firms a commission on any in app purchases made through their respective application platforms. Thus, this might lead to the Australian government passing regulations against both companies.

The Australian Competition and Consumer Commission (ACCC) stated that app developers should be allowed to provide customers with an alternative method of payments. Furthermore, the data collected from Google and Apple should be kept separate from their operations. Similarly, the ACCC even urged tech giants to allow consumers to change or remove pre installed or even default apps.

As per ACCC Chair Rod Sims, “We have identified a number of areas where action is required and have put forward potential measures to address areas of particular concern. There is a window of opportunity for Apple and Google themselves to take steps to improve outcomes for app developers and consumers.” Sims further added that the ACCC would look at changes of laws in other countries and other proposals but “regulation may be required if Apple and Google fail to take steps to address the concerns identified.”

Apple faces $12 million fine in Russia for app market abuse

Sean — Wed, 28 Apr 2021 07:51:56 +0000

Russia is apparently fining Apple for 12 million US Dollars for allegedly abusing the dominance of its mobile app store in the market. This marks another case of the brand facing charges over its app store.

According to a MoneyControl report, The Federal Antimonopoly Service (FAS) stated earlier this week that the Cupertino based giant’s distribution of apps through its iOS operating system gave its own products a higher competitive advantage. Apple replied to this allegations and said that it “respectfully disagreed” with the ruling from FAS and said that it would appeal it. In recent months, western tech giants have come under increasing scrutiny in the region, with Twitter also facing pressure after failing to delete certain content online.

Similarly, Facebook, Google, and even TikTok have also been facing increasing pressure by the local government and authorities. In a statement, the FAS announced a 906.3 million Roubles (roughly 12.1 million US Dollars) fine on Apple for violating the Russian anti monopoly legislation. Back in 2020, the agency had found that the company has abused its dominant position and then issued a directive that had it remove provisions, which allowed it the right to reject third party apps from its App Store.

The move from the agency arrives after a complaint from known cybersecurity based firm Kaspersky Lab, which stated that a new version of its Safe Kids app was declined by Apple’s operating system. In response to this, the iPhone maker said that it has “worked with Kaspersky to get their app in compliance with rules that were put in place to protect children. They now have 13 apps on the App Store and we have processed hundreds of updates for them.”

China implements new anti-monopoly rules targeting tech giants

Jeet — Mon, 08 Feb 2021 05:57:12 +0000

China has implemented new anti-monopoly rules in the country which aims to restrict the activities of the country’s major tech companies. The new rules are basically a formalized version of the ani-monology draft law published in November last year.

The guidelines are expected to put new pressure on the country’s leading internet services, including e-commerce sites such as Alibaba Group’s Taobao and Tmall marketplaces and JD.com. The law also covers payment services like Ant Group’s Alipay and Tencent Holding’s WeChat Pay.

The rules have been issued by the State Administration for Market Regulation (SAMR) on its website, reports Reuters. It bars companies from a range of behavior, including forcing merchants to choose between top internet players, a long-time practice in the market.

It also prevents firms from forcing merchants to choose between supporting specific services and applications, as well as stopping actions that would fix prices, restrict technologies, and other market manipulation techniques.

Explaining the reason behind implementing these new rules, SAMR said reports of internet-related anti-monopoly behavior had been increasing, and that it was facing challenges regulating the industry. It added, “The behavior is more concealed, the use of data, algorithms, platform rules and so on make it more difficult to discover and determine what are monopoly agreements.”

SAMR has already launched an antitrust investigation into Alibaba Group in December following the suspended $37 billion IPO for payment affiliate Ant Group. Alibaba was warned by regulators against practices such as forcing merchants into exclusive cooperation pacts and agreements that would prevent their use of a competitor’s platforms.