US ANTITRUST RULING ON GOOGLE’S MARKET MONOPOLY

Why in the news?

  • A US court ruled that Google violated antitrust laws by maintaining a search engine monopoly.
  • This ruling may influence similar antitrust cases and regulations in India.
US ANTITRUST RULING ON GOOGLE’S MARKET MONOPOLY - UPSCsource:researchgate

US Antitrust Ruling Against Google

  • The US Justice Department, along with several states, sued Google for illegally maintaining its monopoly in search services.
  • Judge Amit Mehta ruled that Google’s “default distribution” of its search engine through pre-installed browsers and widgets gives it an unfair advantage over competitors.
  • The ruling emphasised that this default position hinders competition and innovation in the search engine market.
  • Google was ordered to allow users to choose their default search engine, a significant change in its operations.

Potential Impact on India

  • The ruling, though specific to the US market, could influence similar cases in India, where Google faces allegations of anti-competitive practices.
  • The Competition Commission of India (CCI) is closely monitoring this case, and the outcome could affect Google’s dominance in the Indian market.
  • In India, ongoing debates around the Draft Competition Bill 2024 and its impact on major tech companies like Google and Xiaomi are expected.
Key Regulation of Big Tech Companies in India:

Competition Act, 2002 (Amended 2023):

  • Purpose: Prohibits anti competitive agreements and abuse of dominance.

Key Features:

  • Establishes the Competition Commission of India (CCI).
  • Aims: to eliminate anticompetitive practices (ACPs).
  • Promotes competition, protects consumer interests, and ensures trade freedom.

Draft Digital Competition Bill, 2024:

  • Purpose: Introduces predictive regulation for potential antitrust issues.

Key Features:

  • Identifies and regulates Systematically Significant Digital Enterprises (SSDEs).
  • Aims: to address evolving challenges in digital competition.

Consumer Protection Act, 2019:

  • Purpose: Addresses unfair trade practices.

Key Features:

  • Provides mechanisms for consumer redressal and protection.
  • Ensures fair practices in the marketplace.