Opinions

Judicial delays don't help competition


India‘s competition law, which is in the process of being amended in the Competition (Amendment) Bill 2022, prescribes limits to antitrust penalties in terms of national revenues derived from specific lines of business. Widening the scope of penalties to global revenues of companies from all products and services does not yield much beyond the existing regulatory deterrence. The EU, which has penalties extending to worldwide business, has not used these extreme provisions in its long-running antitrust action against Google. India, on the other hand, has managed to lessen the technology giant’s dominance over mobile operating systems with a puny fine.

The bigger challenge for policymakers trying to keep concentration from building up in markets, particularly in the digital economy, is delay over judicial appeal. Google has a final appeal left in two out of three cases in the EU that have dragged on for over a decade involving online shopping search, Android and AdSense advertising service. In comparison, the company has had to offer mobile handset manufacturers in India freedom to choose from among its bouquet of apps that came bundled with Android, including Play Store that faced separate antitrust action for denying app developers choice in billing. This follows refusal by the National Company Law Appellate Tribunal (NCLAT) and the Supreme Court to stay the order issued by the Competition Commission of India (CCI) in the Android case.

Efforts by Google to charge device manufacturers for Android will run into negotiating payments for having its apps pre-installed. Market forces will likely lessen the impact on costs, an argument Google has made in defence of keeping Android free. Some of these apps do not have effective alternatives – and there is no significant competitor to Android – so Google could retain some dominance. But the larger point is Google has to negotiate, which is in the interests of fair play. Lawmakers and technology companies have a common interest in keeping the internet free and open.

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