NCLAT admits Google's appeal against CCI penalty, next hearing likely in April

The tribunal admitted Google's appeal but did not allow any interim relief and ordered that 10 percent of the penalty amount imposed by the CCI be deposited as an interim measure.

The National Company Law Appellate Tribunal on January 4 agreed to hear Google Inc’s appeal against the Competition Commission of India slapping a penalty of Rs 1,337.76 crore for abusing its dominant position in multiple markets in the Android mobile device ecosystem.

The tribunal admitted Google's appeal but did not allow any interim relief and ordered that 10 percent of the penalty amount imposed by the CCI be deposited as an interim measure.

The final hearing in this matter is now expected in April.

The CCI order passed in October 2022 had, apart from imposing a penalty, asked the tech giant to cease and desist from unfair business practices. The competition watchdog also asked Google to modify its conduct within a defined timeline. The order mandated Google not to force Original Equipment Manufacturers (OEMs) of smart devices to pre-install its own apps or restrict users from un-installing such apps. Further, the US-based company was asked not to offer any incentives to OEMs in order to ensure the exclusivity of its search services.

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The order also directed Google to allow users to choose their default search engine during the installation. Google was also asked to allow developers of other app stores to distribute their app stores through Play Store.

The CCI said that Google leveraged its dominant position in the app store market for Android OS to protect its position in online general search. It also leveraged its dominant position in the app store market for Android OS to enter as well as protect its position in non-OS-specific web browser market.

Smartphone devices need an operating system (OS) to run applications (apps) and programs. Android is one such mobile operating systems which was acquired by Google in 2005.

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PTI reported that Google challenged the CCI order in NCLAT stating that the company believes that CCI failed to appreciate strong evidence on record from OEMs, developers, and users demonstrating that the open Android business model supports competition for the benefit of all stakeholders, including in India, specifically.