Rs 2200 Cr CCI fine: SC admits Google plea amid second law tribunal setback

The Supreme Court has agreed to hear Google’s plea against the National Company Law Appellate Tribunal’s (NCLAT) order refusing an interim stay on Competition Commission of India’s (CCI) Rs 1,337-crore penalty on the US tech giant.

The NCLAT, on January 4, refused an interim stay on competition regulator CCI’s order imposing the penalty on Google and asked it to deposit 10 per cent of the amount. In another blow to the tech giant, the NCLAT on Wednesday refused to grant interim relief to Google on CCI’s penalty of Rs 936.44 crore as well.

Google is facing the penalties for abusing its dominant position with respect to its Android smartphone operating system and Play Store policies. The company had filed appeals before the NCLAT against the two orders of CCI in October.

Hearing on Monday

On Wednesday, a bench comprising Chief Justice DY Chandrachud and Justice PS Narasimha took note of the submissions of senior advocate AM Singhvi, appearing for the US firm, and said it will list the plea for hearing on Monday.

The senior lawyer said the CCI has passed extraordinary directions, and Google must comply with the order by January 19. There is no finding of abuse of dominance, he said.

Also read: Google says CCI “copy-pasted” parts of EU order on Android abuse: Report

The NCLAT admitted the search giant’s challenge to the CCI slapping a Rs 1,337.76-crore fine for abusing the dominant position of its Android smartphone operating system in the country. In October last year, the CCI asked Google to allow smartphone users on the Android platform to uninstall apps and let them select a search engine of their choice. That order was to become effective from January 19.

Again, on October 25, CCI slapped another penalty of Rs 936.44 crore on Google for abusing its dominant position with respect to its Play Store policies. On Wednesday, the appellate tribunal directed Google to deposit 10 per cent of that fine before its registry in the next four weeks.

A two-member bench comprising Justice Rakesh Kumar and Alok Srivastava issued notices to the CCI and other respondents and posted the matter for hearing on April 17, 2023.

Google faces global criticism

Google was fined over Rs 2,200 crore in the two CCI rulings less than a week apart in October, marking a setback for the tech titan in one of the most promising digital markets globally. The regulator has also directed the company to cease and desist from unfair business practices and carry out various measures to address the anti-competitive issues within a defined timeline.

Also read: Google on CCI order: ‘Major setback for Indian consumers’

Subsequently, Google said it was “pausing” its policy as it reviewed legal options. “Following the CCI’s recent ruling, we are pausing enforcement of the requirement for developers to use Google Plays billing system for the purchase of digital goods and services for transactions by users in India while we review our legal options and ensure we can continue to invest in Android and Play,” Google said in an update on its Help Centre page on November 1.

The search engine giant has faced criticism globally for mandating software developers to use only its app store and use its proprietary in-app payment system that charges a commission of up to 30 per cent on purchases made within an app.

Google is also facing a separate probe into its business conduct in the news content and Smart TV market in India.

(With agency inputs)