In a significant development for India's antitrust landscape, the Competition Commission of India passed its first-ever order under the newly introduced settlement and commitment framework in the Google Android TV case (Kshitiz Arya vs Google LLC).
The decision not only marks a watershed moment procedurally, being the debut application under the settlement regime, but also substantively reflects the continuity of the CCI's scrutiny of Google's conduct in India across devices and platforms.
The matter stemmed from allegations that Google abused its dominance in the market for licensable smart TV operating systems through its licencing terms with original equipment manufacturers.
Much like the CCI's earlier investigation into the Android smartphone ecosystem, which culminated into a large fine and a series of remedial measures in October 2022 (Confidential vs Alphabet Inc.), the Android TV case focused on the anti-competitive restrictions imposed by Google through agreements, such as the Android Compatibility Commitment and the Television App Distribution Agreement. These agreements allegedly stifled OEMs' ability to offer alternate versions of Android (forks) or pre-install competing apps, thus foreclosing market access to rivals.
The decision not only marks a watershed moment procedurally, being the debut application under the settlement regime, but also substantively reflects the continuity of the CCI's scrutiny of Google's conduct in India across devices and platforms.
The matter stemmed from allegations that Google abused its dominance in the market for licensable smart TV operating systems through its licencing terms with original equipment manufacturers.
Much like the CCI's earlier investigation into the Android smartphone ecosystem, which culminated into a large fine and a series of remedial measures in October 2022 (Confidential vs Alphabet Inc.), the Android TV case focused on the anti-competitive restrictions imposed by Google through agreements, such as the Android Compatibility Commitment and the Television App Distribution Agreement. These agreements allegedly stifled OEMs' ability to offer alternate versions of Android (forks) or pre-install competing apps, thus foreclosing market access to rivals.
Leaning On Precedent
It appears that the settlement decision in the Android TV case benefited from the extensive factual and legal groundwork laid during the Android OS smartphone case. The issues ranging from mandatory bundling of apps to restrictions on competing app stores were largely parallel. This likely enabled swift resolution of the Android TV matter.
As a result, Google offered a suite of behavioural commitments reminiscent of the remedies it was required to implement in the Android smartphone case. These included providing OEMs with greater flexibility in pre-installing rival apps, unbundling certain Google applications from licencing requirements and allowing forks of Android on TV devices without facing compatibility-related reprisals.
The À La Carte App Option
One controversial aspect of the settlement decision, however, was the provision allowing smart TV OEMs to choose Google apps on a standalone basis, subject to the payment of an à la carte fee. While this was intended to offer OEMs real choice and mitigate the effects of forced bundling, the measure failed to garner unanimous support within the CCI.
A dissenting member questioned whether this optionality truly empowered smart TV OEMs or merely imposed an economic burden that few could realistically choose. According to the dissenting view, charging a separate fee for individual apps may result in OEMs sticking to the original bundled packages, not because of competitive merit, but due to commercial necessity, thus undermining the goal of restoring genuine competition.
Broader Implications
Despite the split views within the CCI, the settlement order has far-reaching implications.
A tool for market correction: The order underscores the CCI's willingness to use the new settlement mechanism as a tool for efficient market correction. The regime, introduced through the 2023 amendments to the Competition Act, is designed to expedite case closures, reduce litigation and avoid prolonged appeals, an outcome that benefits both the regulator and the investigated parties. Settlements also allow for flexible, tailored commitments that can address specific market harms without imposing across-the-board penalties.
Incentives for cooperation: The reduction in financial liability through settlement is an incentive for parties to proactively engage with the CCI. While the exact amount of fine reduction in this case is not publicly disclosed, it is evident that it was much lower than the penalty in the smartphone case, despite the overlapping nature of the conduct. This signals that parties who come forward and offer credible, forward-looking commitments may find a more constructive and less punitive path through India's antitrust enforcement system.
Shift toward corrective regulation: The case reflects a maturing regulatory philosophy, one that prioritises conduct correction over punishment. By focusing on behavioural changes through dialogue, the CCI is seeking to align Indian competition enforcement with global best practices, where negotiated remedies are often preferred over prolonged litigation.
Looking Ahead
The dissent within the CCI highlights the need for vigilance in assessing whether such settlements deliver real competitive benefits. The effectiveness of commitments like optional app bundling will depend heavily on how they are implemented and monitored. If OEMs continue to find the à la carte fees unsustainable, the theoretical choice may not translate into real-world change.
Nevertheless, the CCI's order sends a clear message: the settlement mechanism is open for business. It offers a path to early finality, reduced compliance costs and a flexible remedy framework that can be tailored to complex digital markets.
Anisha Chand is a partner at Khaitan & Co.
Disclaimer: The views expressed here are those of the author and do not necessarily represent the views of NDTV Profit or its editorial team.
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