Indian watchdog fines Google over $160 million for market dominance

India's anti-trust watchdog has fined Google more than $160 million after a probe found the tech behemoth was abusing its commanding position in the local smartphone market.

The California-based company's Android mobile operating system is by far the dominant player in India and is run on 95 per cent of all the country's smartphones, according to research agency Counterpoint, TRT World reports.

But the Competition Commission of India (CCI) said Google had configured the platform to unlawfully crowd out rivals to its popular apps, including YouTube and the web browser Chrome.

Android had a suite of Google apps pre-installed on its phones, including the company's own search engine, "which accorded significant competitive edge to Google's search services over its competitors", a CCI statement said.

"Markets should be allowed to compete on merits and the onus is on (Google) that its conduct does not impinge this competition on merits," it added.

The commission levied a fine of 13.4 billion rupees ($162 million) and instructed the company not to force Android users to pre-install its apps.

It also told Google not to enter into any agreement with smartphone makers that would encourage them to only sell Android-based devices or exclusively use its software.

India is home to the second-highest number of smartphone users in the world, after China.

Its smartphone market grew 27 per cent year-on-year in 2021, according to Counterpoint, with annual sales exceeding 169 million units.

More than 60 per cent of phones sold in the country come from leading Chinese manufacturers including Xiaomi and Oppo.

Apple remains a minor player in the budget-conscious market but has seen some inroads in recent years. Last month, the company announced plans to manufacture its flagship iPhone 14 locally.