CCI rejects complaint against Microsoft over Windows anti-virus bundling

The Competition Commission of India (CCI) has rejected a complaint filed against Microsoft with respect to bundling of anti-virus software with its Windows operating system.

It was alleged that bundling of the anti-virus software was violating fair competition norms.

Starting with Windows 10 Operating System (OS) edition, the anti-virus software Microsoft Defender is bundled with it.

In a 17-page order dated March 3, the CCI said there was no prima-facie case of contravention and closed the matter.

To assess the complaint, the regulator considered two relevant markets -- the market for computer security (antivirus) software for Windows OS in India and the market for desktop/laptop security (antivirus) software for Windows OS in India.

Citing Microsoft's submissions, the CCI observed that there is no compulsion on users to exclusively use Microsoft Defender as their antivirus solution.

Also, it noted that OEMs (Original Equipment Manufacturers) are permitted to pre-install alternative third-party antivirus software on desktops and laptops running Windows OS.

"Additionally, other OS providers, such as macOS and ChromeOS, also include built-in antivirus functionality in place. Therefore, in the absence of an element of compulsion or imposition, prima facie there appears to be no violation of Section 4(2)(a)(i) of the Act," the order said.

Section 4 of the Competition Act pertains to abuse of dominant market position.

According to the regulator, there is no indication of market foreclosure in the antivirus solutions sector.

"Despite the presence of Microsoft's built-in security software, multiple well-established and prominent players continue to operate in the market without significant barriers to entry or exclusion," it added.