Tech giant Google will request the Competition Commission of India (CCI) to seek approval for its Rs 33,737 crore investment in Jio Platforms to get a 7.73 percent stake, according to resources. Google intends to approach the CCI for permission on the deal in the following two weeks, according to the sources privy to the development.
When contacted, Google and Reliance, Jio didn’t comment on the matter. The partnership will also discuss about the two parties work on technology initiatives, including the development of affordable smartphones.
California-based Alphabet Inc (parent firm of Google) joined Facebook Inc, which opened the investment cycle in Jio Platforms by picking a 9.99 percent stake for Rs 43,573.62.
Last month, Facebook obtained CCI approval on its transaction that has been carried out via a wholly-owned indirect subsidiary, Jaadhu Holdings LLC.
Reliance becomes sold a 32.8 percent stake in Jio Platforms Ltd – the unit which houses India’s youngest but largest telecom firm Jio Infocomm and apps – to 13 marquee firms including chipmaker Intel Corp and Qualcomm Inc, for more than 1.52 lakh crore.
Jio Platforms, which can also be amassing a wide array of services from music streaming to internet retail and payments, is expected to utilize its 388 million mobile telephone subscribers as the foundation of an e-commerce and digital solutions firm to rival Amazon and Walmart’s Flipkart.
Google and Jio are working to construct a working system that may power affordable 4G and 5G tablets. Also, JioMart, an online shopping portal site, and WhatsApp will be working closely to allow customers to transact at mom-and-pop stores seamlessly.
Talking on the partnership with Jio, Google CEO Sundar Pichai had stated: “Through this partnership with Jio Platforms, we see the opportunity to have a much larger impact than either firm might have alone. This partnership is an necessary part of the next phase of investment in India… Our investment of USD 4.5 billion in Jio is the first — and the largest — investment we will make through this finance (of USD 10 billion declared on July 13).”