Domestic retailers are likely to come to Google’s aid in the National Company Law Appellate Tribunal (NCLAT) by testifying that users of Google Android devices do not face any costs in transferring their data when switching to iOS (Apple) devices.
The NCLAT will hear Google’s arguments, pertaining to its appeal against Competition Commission of India’s order penalising it for monopolistic practices, between February 15 and 17. The Supreme Court has directed NCLAT to dispose of the matter by March 31.
Domestic retailers selling Android and iOS (Apple) phones are understood to have pointed out that apart from the availability of several software packages – Samsung Smart Switch, OnePlus Clone Phone, Xiaomi Mi Mover, Move to iOS etc, – that shift key apps, including WhatsApp, from an Android device to iOS easily and reasonably quickly, the transfer is also free of cost. Further, customers can trade in an Android device for an iPhone and vice versa.
Retailers say the software packages are developing rapidly since both Android and iOS want to attract each other’s customers. In fact, in India, the vast majority, if not all, of iOS’ new customers come from Android. This is radically different from Europe where the transition is done for a consideration.
This particular piece of evidence may assume significance because the CCI’s order holding Google guilty of abusing its dominant position has stated that there is no substitutability between the 97% Android and 3% iOS market in India.
The director general’s report based on which the CCI passed its order has said in para 8.93, “Moreover, it is also re-emphasised that the dominance of the Google is also established from the fact that the users of Android devices would face substantial costs when switching to iOS devices. These include the need to download and purchase existing apps for the new smart mobile OS, the need to learn and become familiar with a new interface and the need to transfer a large amount of data through often inconvenient and imperfect mechanisms”.
Google, which in its appeal, has alleged that the CCI’s order is ridden with over 50 instances of copy-paste from European Commission’s Android decision passed in 2018 (Case AT. 40099 Google Android), has cited an example here to prove its case.
“Users of Google Android devices would face substantial costs when switching to iOS devices. These include the need to download and purchase existing apps for the new smart mobile OS, the need to learn and become familiar with a new interface and the need to transfer a large amount of data through often inconvenient and imperfect mechanisms,” para 522-533 of the EC’s Android decision of 2018 reads, according to Google’s submission.
As is known, in its order in October 2022, CCI held Google guilty of abusing its dominance in the licensing of operating system for smart mobile devices, app store market for Android smart mobile, general web search services, non-operating system specific mobile web browsers and online video hosting platforms in the country. Accordingly, it levied a penalty of `1,338 crore on the company and directed it to cease and desist from such practices.
After subsequently failing to get an interim stay on CCI’s order from the NCLAT and Supreme Court, Google has introduced changes to its Android policy in the country, which includes allowing users to choose their default search engine on Android-based smartphones. Original equipment manufacturers or smartphone makers are now at the liberty to licence individual Google apps for pre-installation on their devices. The next course of the events will be decided by the NCLAT.