Manish Singh
Thu, January 19, 2023
Google has been dealt a significant blow in one of its key overseas markets. India's Supreme Court on Thursday declined to block an antitrust order that requires the Android-maker to make a series of changes that could topple its financial viability.
India's apex court rejected to block the ruling against Google by the nation's antitrust watchdog Competition Commission of India. The court extended the deadline for enforcement of CCI's order by one week, however.
The matter will now go back to the country’s appellate tribunal, the National Company Law Appellate Tribunal (NCLAT), where Google previously failed to secure any relief. The Supreme Court has directed NCLAT to make its decision by March 31. The challenge for Google is that unless NCLAT reaches a decision in Google's favor by this month, the tech giant will have to make a series of changes to Android.
India is Google's largest market by users. The firm has amassed over half a billion monthly active users in the country. The vast majority of the smartphones shipped in India run Android.
The Competition Commission of India late last year slapped two fines against Google, alleging the Android-maker abused the Play Store’s dominant position in the country and required Android device makers to pre-install its entire Google Mobile Suite.
The CCI has ordered Google to not require licensing of its Play Store to be linked with mandating installation of several Google apps such as Chrome and YouTube. The watchdog has also ordered Google to allow removal of all its apps from phones and give smartphone users the ability to change their search engine provider. The CCI also fined Google $162 million in its first order.
Google warned earlier this month that if the Indian antitrust watchdog’s ruling is allowed to progress it would result in devices getting expensive in the South Asian market and lead to proliferation of unchecked apps that will pose threats for individual and national security, escalating its concerns over the future of Android in the key overseas region.
“Predatory apps that expose users to financial fraud, data theft and a number of other dangers abound on the internet, both from India and other countries. While Google holds itself accountable for the apps on Play Store and scans for malware as well as compliance with local laws, the same checks may not be in place for apps sideloaded from other sources,” the company said.
Google is facing mounting scrutiny from governments across the globe as policymakers begin to worry about the reach of technology giants and assess whether that is in detriment to local companies. Google lost its appeal against a record $4.3 billion fine in EU for using the dominance of Android to thwart competition. It’s also subject to Germany’s new regulation that targets large companies.
Indian startups rejoice as Android ruling against Google upheld
: Tour of Google's new Bay View Campus in Mountain View, California, U.S.
Thu, January 19, 2023
By Munsif Vengattil and Aditya Kalra
NEW DELHI (Reuters) -Startups in India cheered a decision by the Supreme Court on Thursday to uphold an antitrust order that forces Google to change how it runs its popular Android platform, saying the ruling would open the market for rivals and boost competition.
The Competition Commission of India (CCI) ordered Google in October to make a series of changes, such as refraining from agreements that ensure exclusivity of its search services and mandatory pre-installation of its apps. It also told Google to allow third-party app stores to be housed within its Play Store.
In a major setback for the Alphabet Inc unit, the Supreme Court of India on Thursday declined Google's request to block the antitrust directives, which the company says would hurt consumers and stall growth of the Android ecosystem in India. Google now needs to comply within seven days.
Rohan Verma, CEO of maps service MapmyIndia which launched an app in 2004, told Reuters his app had not gained market share over the years because the Google Maps app was pre-installed on many Android phones.
The CCI order states Google can't impose such requirements now.
"We are elated," said Verma. "There was negative impact over the years, we hope now consumers and device makers use our app more."
About 97% of 600 million smartphone devices in India run on Android, according to Counterpoint Research estimates. Apple has just a 3% share.
Google licenses the Android system to smartphone makers, saying it provides more choice for everyone and agreements it strikes - which critics say are anti-competitive - help keep the operating system free and open-source.
Calling the ruling a "watershed moment", Rakesh Deshmukh, CEO of Indus OS, which runs a rival app store to Google's, said allowing other app stores within the U.S. firm's Play Store in India would give consumers more choice and promote use of apps.
Naval Chopra, a lawyer at India's Shardul Amarchand Mangaldas, which has challenged Google in courts in the past, said Thursday's court decision was a landmark one.
"This is a landmark decision in the history of competition law in India and globally," he said, adding the CCI directives "may well lead to a new Indian competitor in video hosting, mapping, web browsers or, dare we say it, search."
(Reporting by Aditya Kalra and Munsif VengattilAdditional reporting by Arpan ChaturvediEditing by Mark Potter)
: Tour of Google's new Bay View Campus in Mountain View, California, U.S.
Thu, January 19, 2023
By Munsif Vengattil and Aditya Kalra
NEW DELHI (Reuters) -Startups in India cheered a decision by the Supreme Court on Thursday to uphold an antitrust order that forces Google to change how it runs its popular Android platform, saying the ruling would open the market for rivals and boost competition.
The Competition Commission of India (CCI) ordered Google in October to make a series of changes, such as refraining from agreements that ensure exclusivity of its search services and mandatory pre-installation of its apps. It also told Google to allow third-party app stores to be housed within its Play Store.
In a major setback for the Alphabet Inc unit, the Supreme Court of India on Thursday declined Google's request to block the antitrust directives, which the company says would hurt consumers and stall growth of the Android ecosystem in India. Google now needs to comply within seven days.
Rohan Verma, CEO of maps service MapmyIndia which launched an app in 2004, told Reuters his app had not gained market share over the years because the Google Maps app was pre-installed on many Android phones.
The CCI order states Google can't impose such requirements now.
"We are elated," said Verma. "There was negative impact over the years, we hope now consumers and device makers use our app more."
About 97% of 600 million smartphone devices in India run on Android, according to Counterpoint Research estimates. Apple has just a 3% share.
Google licenses the Android system to smartphone makers, saying it provides more choice for everyone and agreements it strikes - which critics say are anti-competitive - help keep the operating system free and open-source.
Calling the ruling a "watershed moment", Rakesh Deshmukh, CEO of Indus OS, which runs a rival app store to Google's, said allowing other app stores within the U.S. firm's Play Store in India would give consumers more choice and promote use of apps.
Naval Chopra, a lawyer at India's Shardul Amarchand Mangaldas, which has challenged Google in courts in the past, said Thursday's court decision was a landmark one.
"This is a landmark decision in the history of competition law in India and globally," he said, adding the CCI directives "may well lead to a new Indian competitor in video hosting, mapping, web browsers or, dare we say it, search."
(Reporting by Aditya Kalra and Munsif VengattilAdditional reporting by Arpan ChaturvediEditing by Mark Potter)
India releases guidelines for social media influencers accepting paid promotions
Jagmeet Singh
Fri, January 20, 2023
As the market of social media influencers is getting bigger in India, the South Asian nation has introduced endorsement guidelines to limit unfair trade practices and misleading promotions on the web.
On Friday, the Department of Consumer Affairs held a press conference to announce new guidelines to make it mandatory for social media influencers to disclose promotional content in accordance with the Consumer Protection Act, 2019.
Failing to follow the guidelines will make social media influencers liable for a fine of up to $12,300 (1 million Indian rupees). In the case of repeated offenders, the penalty can go up to $61,600 (5 million Indian rupees), the Indian government department said.
The department specified that the guidelines apply to social media influencers as well as virtual avatars promoting products and services online. The disclosures should be easy to notice in post descriptions where you can usually find hashtags or links. It should also be prominent enough to be noticeable in the content, the department said.
When it comes to promoted content in videos, the department said that disclosures for paid promotions should be placed in the video — not just in the description — and be made in both audio and video format. Influencers must also disclose if they promote a brand, service or product during livestreams, per the guidelines.
The department said the disclosures and endorsements should be in the language of the content.
"Today's guidelines are aimed at social influencers who have a material connection with the brand they want to promote on various social media platforms. So this is an obligation for them to behave responsibly," consumer affairs department secretary Rohit Kumar Singh told reporters.
The official said the department was in talks with tech companies to deploy some crawling algorithms to identify offenders. Meanwhile, consumers can file complaints if they find an influencer violating the guidelines, the secretary said.
"You can never cover it 100%. This is a cat-and-mouse thing... So, the idea is to protect the interests of the consumers and let him not be taken for a ride by showing him something as unbiased whereas actually, it is a paid thing," he added.
According to the secretary, the size of the social media influencer market in India in 2022 was $157 million. It could reach as much as $345 million by 2025.
Indian advertising industry's self-regulatory body Advertising Standards Council of India (ASCI) has welcomed the government's move.
"Influencer violations comprise almost 30% of ads taken up by ASCI, hence this legal backing for disclosure requirements is a welcome step. The [consumer affairs] ministry had been in touch with ASCI to review the various global guidelines on influencers," said Manisha Kapoor, CEO and secretary general of ASCI.
Jagmeet Singh
Fri, January 20, 2023
As the market of social media influencers is getting bigger in India, the South Asian nation has introduced endorsement guidelines to limit unfair trade practices and misleading promotions on the web.
On Friday, the Department of Consumer Affairs held a press conference to announce new guidelines to make it mandatory for social media influencers to disclose promotional content in accordance with the Consumer Protection Act, 2019.
Failing to follow the guidelines will make social media influencers liable for a fine of up to $12,300 (1 million Indian rupees). In the case of repeated offenders, the penalty can go up to $61,600 (5 million Indian rupees), the Indian government department said.
The department specified that the guidelines apply to social media influencers as well as virtual avatars promoting products and services online. The disclosures should be easy to notice in post descriptions where you can usually find hashtags or links. It should also be prominent enough to be noticeable in the content, the department said.
When it comes to promoted content in videos, the department said that disclosures for paid promotions should be placed in the video — not just in the description — and be made in both audio and video format. Influencers must also disclose if they promote a brand, service or product during livestreams, per the guidelines.
The department said the disclosures and endorsements should be in the language of the content.
"Today's guidelines are aimed at social influencers who have a material connection with the brand they want to promote on various social media platforms. So this is an obligation for them to behave responsibly," consumer affairs department secretary Rohit Kumar Singh told reporters.
The official said the department was in talks with tech companies to deploy some crawling algorithms to identify offenders. Meanwhile, consumers can file complaints if they find an influencer violating the guidelines, the secretary said.
"You can never cover it 100%. This is a cat-and-mouse thing... So, the idea is to protect the interests of the consumers and let him not be taken for a ride by showing him something as unbiased whereas actually, it is a paid thing," he added.
According to the secretary, the size of the social media influencer market in India in 2022 was $157 million. It could reach as much as $345 million by 2025.
Indian advertising industry's self-regulatory body Advertising Standards Council of India (ASCI) has welcomed the government's move.
"Influencer violations comprise almost 30% of ads taken up by ASCI, hence this legal backing for disclosure requirements is a welcome step. The [consumer affairs] ministry had been in touch with ASCI to review the various global guidelines on influencers," said Manisha Kapoor, CEO and secretary general of ASCI.
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