NCLAT upholds Rs 1,337.76 cr fine on Google, tweaks CCI order
Google is reviewing the order while it is in the process of evaluating legal options
NEW DELHI: An appellate tribunal on Wednesday handed out a mixed verdict on Google’s alleged anti-competitive practices in the android mobile devise case - upholding a fine of Rs 1,338 crore but scrapping conditions like allowing hosting of third-party app stores on its Play Store.
While upholding the fine imposed by the CCI for exploiting its dominant position in Android, the NCLAT struck down anti-trust regulator order that had said Google will not restrict the removal of its pre-installed apps by the users.
Notably, the NCLAT in its 189page order, upheld CCI’s six directions, including one in which Google was asked to allow the users during the initial device setup to choose their default search engine, and another that made it clear that OEMs cannot be forced to pre-install a bouquet of apps.
Google said it is reviewing the NCLAT order and is in the process of evaluating legal options.
A two-member bench of the National Company Law Appellate Tribunal (NCLAT) has asked Google to implement the direction and deposit the amount in 30 days.
The appellate tribunal said “the impugned order of the Commission is upheld except the four directions” issued and added that Google is “thus not entitled for any other relief except for setting aside the above four directions”.
“The Appellant (Google) is allowed to deposit the amount of penalty (after adjusting the 10 per cent amount of penalty as deposited under order dated January 4, 2023) within a period of 30 days from today,” it said.
On October 20 last year, the Competition Commission of India (CCI) slapped a penalty of Rs 1,337.76 crore on Google for anti-competitive practices in relation to Android mobile devices. The regulator also ordered the internet major to cease and desist from various unfair business practices.
This ruling was challenged before the NCLAT, which is an appellate authority over the orders passed by the CCI.
A Google spokesperson said: “We are grateful for the opportunity given by the NCLAT to make our case. We are reviewing the order and evaluating our legal options”.
The NCLAT order passed on Wednesday marks one of the most high-profile anti-trust battles in the Indian market, involving the tech giant and CCI, and concludes over a monthlong day-to-day hearing by the appellate tribunal on the directions of the Supreme Court.
Out of the 10 directions issued by the CCI on October 20, 2022, to Google, the NCLAT upheld the six directions and said it “is allowed 30 days time to implement the measures”.
One of the important directions by CCI upheld by the NCLAT said Google will allow the users, during the initial device setup, to choose their default search engine for all search entry points.
The tribunal also upheld five other directions of CCI - that OEMs shall not be forced to pre-install the bouquet app; licensing of Play Store to OEMs shall not be linked with the requirement of pre-installing Google apps.