India’s antitrust watchdog has approved Google’s proposed investment of $4.5 billion in the nation’s largest telecom platform Jio Platforms, it said in a tweet on Wednesday.
Google announced in July that it would be investing $4.5 billion for a 7.73% stake in the top Indian telecom network. As part of the deal, Google and Jio Platforms plan to collaborate on developing a customized-version of Android mobile operating system to build low-cost, entry-level smartphones to serve the next hundreds of millions of users, the two companies said.
The announcement today comes days after the Indian watchdog, Competition Commission of India (CCI), said it had directed an in-depth investigation into Google to verify the claims of whether the Android-maker promotes its payments service during the installation of an Android smartphone (and whether phone vendors have a choice to avoid this); and if Google Play Store’s billing system is designed “to the disadvantage of both i.e. apps facilitating payment through UPI, as well as users.”
The call for this in-depth investigation was prompted after the CCI concluded in its initial review that requiring Google Pay to be used buy apps or make in-app payments was an “imposition of unfair and discriminatory condition, denial of market access for competing apps of Google Pay and leveraging on the part of Google,” the watchdog said.
Jio Platforms, which has amassed over 400 million subscribers, has this year raised over $20 billion from 13 high-profile investors including Facebook, which alone invested $5.7 billion into the Indian firm. That deal has also been approved by the CCI. Jio Platforms is a subsidiary of Reliance Industries, India’s most valued firm. It is run by Mukesh Ambani, Asia’s richest man.
