Google Plans To Appeal Against CCI For Its Penalties: Report

Google is planning to legally challenge the Competition Commission of India (CCI) against the two orders that imposed penalties on the tech giant.

On October 20 and October 26, two orders were released by CCI which imposed a total fine of Rs 2,274 crore on Google for exploiting its position in the Android operating system and Android mobile app store. The regulatory body published a cease-and-desist order to correct the 'anti-competitive practices' of Google.

A source familiar with the matter told the Financial Express that Google has found three reasons why it believes that the antitrust regulator's judgement is not justified.

According to the publication, the National Company Law Appellate Tribunal (NCLAT) is expected to hear appeals against the CCI orders.

The report details that the first thing that Google found flawed in the order is its nature of fine which it views as penal rather than a token.

“There was no violation by Google of any laid down laws. Still, if the CCI found its practices to be anti-competitive, a token fine could have been levied under the provisions of competition laws. However, the nature of fine imposed by the CCI is penal, which is levied only in cases of malafide intent,” the Financial Express quoted its sources as saying.

Google is also taking into consideration the patent laws, which it claims to have been upheld in this case, as the second argument.

“Android is a patented product of Google. Under patent laws, the company is entitled to set boundaries on the usage of the open source versions to ensure the overall security of the ecosystem,” the Financial Express quoted its sources as saying.

The lack of evidence from all stakeholders, including customers, is the third argument that Google has reportedly cited in the appeal.

“The order is based on the evidence provided by app developers and manufacturers who use the open source versions, but users who get to feel a uniform experience across devices are also stakeholders and their point of view should have been taken into account,” the Financial Express quoted its sources as saying.