NCLAT Upholds CCI’s Rs 1,338 Crore Penalty On Google In Android Case

In a major shocker to Google, the National Company Law Appellate Tribunal (NCLAT) has upheld the fine of Rs 1,337 crore imposed on Google by the Competition Commission of India (CCI) for allegedly abusing its position in the Android mobile ecosystem. 

The NCLAT watchdog’s found that the investigation conducted by the CCI into Google’s conduct was not in violation of principal of nature justice. 

"We upheld this penalty… The appellant (google) is allowed to deposit the penalty" after adjusting 10 per cent of the amount already deposited as per its previous order of January 4 within a period of 30 days, it said. It also granted Google 30 days time to implement the measures as directed by the Competition Commission of India, which have been upheld by NCLAT.

Last month, Google submitted before the NCLAT that there had been an ‘unfair imposition’ by the CCI on its mobile app distribution agreement with device makers, as it did not restrict the device makers from installing other apps, including those of rivals.

NCLAT had started its hearing in the Android case on Feb 15 following the directives by the Supreme Court which denied interim relief to the company, asked NCLAT to decide on the appeal by March 31.

While arguing the matter before the tribunal, Google said that the pre-installation of its apps on devices through a MADA (Mobile Application Distribution Agreement) was not ‘unfair’ or ‘unrightfully’ as there is was no restriction from installing other apps and have enough space available for them. 

Apart from the penalty, the CCI also directed Google to cease and desist from participating in anti-competitive practices and directed it to modify its conduct within a defined timeline, as reported by the Bar and Bench.

Earlier, a different NCLAT bench has on January 4 issued a notice to Google’s plea, directing it to pay 10 per cent of the Rs 1,337 crore penalty imposed by the CCI. It had declined to stay the CCI order and put the matter for a final hearing on April 3, 2023. This was challenged by Google before the Supreme Court, which also declined to stay the CCI order. 

(With agency inputs)