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Business News/ Companies / News/  Google-CCI case: NCLAT directs Google to deposit 10% of 1,337.76 cr penalty
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Google-CCI case: NCLAT directs Google to deposit 10% of ₹1,337.76 cr penalty

The Competition Commission of India in October fined Alphabet Inc's Google $161 million for exploiting its dominant position in markets such as online search and through the Android app store

The Competition Commission had slapped a penalty of ₹1,337.76 crore on Google for anti-competitive practices in relation to Android mobile devicesPremium
The Competition Commission had slapped a penalty of 1,337.76 crore on Google for anti-competitive practices in relation to Android mobile devices

NCLAT on Wednesday declined Google's request for an interim stay on an antitrust ruling that ordered the tech giant to change its approach to its Android platform.

A two-member bench, however, declined to grant any immediate stay the operations of Competition Commission of India (CCI) penalty and said it would pass any order after hearing out other parties.

The appellate tribunal has issued notices to CCI and directed to list the matter on February 13, for hearing over interim stay.

The NCLAT direction came over a petition filed by Google, challenging the CCI order on the tech giant abusing its dominant position in multiple markets in the Android mobile device ecosystem, saying the verdict is a setback for Indian users and will make such devices more expensive in the country.

The Competition Commission of India in October fined Alphabet Inc's Google $161 million for exploiting its dominant position in markets such as online search and through the Android app store, and asked it to change restrictions imposed on smartphone makers related to pre-installing apps.

The Competition Commission had slapped a penalty of 1,337.76 crore on Google for anti-competitive practices in relation to Android mobile devices. In the October ruling, CCI had also ordered the internet major to cease and desist from various unfair business practices.

The CCI decision exposes Indian users to unprecedented security risks, and will make Android devices in India more expensive, less functional and less safe than they are today, the sources claimed.

Sources aware of the company's stance said Google believes that the ruling will harm Indian developers whose costs will increase.

Appeals against CCI orders can be filed in the appellate tribunal NCLAT.

Google was fined over 2,200 crore in two CCI rulings less than a week apart in October.

In its second ruling against Google, the Competition Commission had slapped a penalty of 936.44 crore on the company for abusing its dominant position with respect to its Play Store policies.

In November, Google said it is "pausing" enforcement of the requirement for developers to use Play's billing system for the purchase of digital goods and services for transactions by users in India while it reviews legal options in the aftermath of the CCI ruling.

India is a significant market for global tech giants, who are drawn to its large user base, tech appetite, business potential, and enabling policies.

Google's India-born CEO Sundar Pichai, during his visit to India earlier this week, had said the pace of technological change in the country has been extraordinary and the company is supporting small businesses and startups, investing in cybersecurity, providing education and skills training, and applying AI (Artificial Intelligence) in sectors like agriculture and healthcare.

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Published: 04 Jan 2023, 11:48 AM IST
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