Supreme Court Lists Google vs. CCI Matter for Final Disposal on 10th October, 2023
The Supreme Court while adjudicating the appeal filed in the matter of Google LLC & Anr. vs. Competition Commission of India has listed the matter on 10th October, 2023.
The bench led by Chief Justice of India (CJI) DY Chandrachud, Justices PS Narasimha, and Manoj Misra stated that the bench needed more time to prepare to hear the matter.
Following this, Senior Advocate Harish Salve suggested that the bench list the matter for final disposal in September or October. Noting the suggestion, CJI DY Chandrachud ordered:
“We will keep it for final disposal on October 10, 2023. The counsels shall file brief notes which should be exchanged. They should also exchange issue October 3, 2023. The parties shall prepare soft copies of convenience compilation. Mr Samar Bansal shall be the nodal counsel.”
The dispute originally stemmed when Android- a mobile operating software was acquired by Google in 2005. The consumers of Android based smart phones filed a complaint against Google LLC and Google India under Section 19(1)(a) of the Competition Act, 2002, alleging abuse of dominant position by Google in the mobile Operating System markets.
The Competition Commission of India (CCI) while adjudicating the complaint in Mr. Umar Javeed & Ors. vs. Google LLC & Anr., (2018), examined Google’s Android mobile operating system and proprietary mobile applications such as Play Store, Google Search, Google Chrome, YouTube, etc.
It was observed that Google manages the Android OS and licenses its other proprietary applications. The Original Equipment Manufacturers (OEMs) use this OS & Google’s apps in their smart mobile devices. Google enters into multiple agreements to govern their rights and obligations viz. Mobile Application Distribution Agreement (MADA), Anti-fragmentation Agreement (AFA), Android Compatibility Commitment Agreement (ACC), Revenue Sharing Agreement (RSA), etc.
The CCI held that mandatory pre-installation of entire Google Mobile Suite (GMS) under MADA, with no option to un-install the same, and their prominent placement amounts to imposition of unfair condition on the device manufacturers.
Thus, it was held that Google violated Section 4(2)(a)(i) of the Competition Act. The CCI concluded that Google perpetuated its dominant position in the online search market, resulting in denial of market access for competing search apps. Further, Google abused its dominant position in the Android OS app store market, to protect its position in the Android OS app store market, to protect its position in online general search.
In January 2023, Google filed an appeal before the National Company Law Appellate Tribunal (NCLAT), challenging the Order dated 20 October, 2022 passed by CCI imposing a penalty of Rs. 1337.76 crores on Google.
On 29 March, 2023 the NCLAT dismissed the Google’s appeal and upheld the penalty of Rs. 1337.76 crores imposed on Google. The Bench observed that the CCI’s investigation into Google’s conduct was not violative of principles of natural justice.
Accordingly, the NCLAT had upheld the six directions passed by the CCI against Google.