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Business News/ News / India/  SC to hear Google plea against CCI penalty today. Know more about the case
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SC to hear Google plea against CCI penalty today. Know more about the case

The Supreme Court of India is set to hear a plea filed by Google over the imposition of a ₹1,337 crore penalty by the Competition Commission of India and the NCLAT's subsequent refusal to grant interim relief.

The Supreme Court of India. (File Photo) (PTI)Premium
The Supreme Court of India. (File Photo) (PTI)

The Supreme Court of India is set to hear a plea filed by Google over the imposition of a 1,337-crore penalty by the Competition Commission of India. The global technology firm has challenged the National Company Law Appellate Tribunal's refusal to provide interim relief. As things currently stand, Google will have to implement all changes by January 19 this year.

While Google licenses its Android system to smartphone makers, critics say that restrictions - such as the mandatory pre-installation of its own apps - is anti-competitive. It insists that the NCLAT "erroneously rejected" its request for relief “based on the Commission's deeply flawed order".

The tech giant contends that the new antitrust order will drive up costs for app developers, equipment makers, and ultimately consumers. The company argues that the remedial measures will also lead to an increase of unchecked apps that may pose a security threat.

"The CCI order requires Google to modify its existing contracts, introduce new licence agreements, and alter its business model and commercial arrangements with thousands of device manufacturers and app developers," Google told the apex court in a petition last week.

It claims that the appeal before the NCLAT would become a "fait accompli" (something that has already happened or been done and cannot be changed) as the appellate tribunal has refused to put a stay and listed hearing of its plea almost 10 weeks after Google would be compelled to undertake corrective measures.

In October last year, the CCI had imposed massive penalties against Google for "abusing its dominant market position" and ordered the tech giant to comply with certain requirements. The 1,337.76 crore fine was imposed on the company for exploiting its position with respect to Android - which powers 97% of the country's smartphones. A second 936-crore penalty came in a case related to its Play Store policies.

The tech major alleges that NCLAT acted "unlawfully" in conditioning the admission of Google's appeal upon it depositing 10% of the penalty amount. 

If the "Commission's order is stayed, there will be no harm caused to anyone- Google's agreements with phone manufacturers have been in place for the past 14-15 years and none of these manufacturers has complained to the Commission," it added in the SC petition.

(With inputs from agencies)

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Published: 16 Jan 2023, 08:08 AM IST
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