NCLAT orders Google to deposit 10% of Rs. 1,337.76 crore as penalty in Google-CCI case

NCLAT orders Google to deposit 10% of Rs. 1,337.76 crore as penalty in Google-CCI case

The National Company Law Appellate Tribunal (NCLAT) in the case of Google LLC & Another v. Competition Commission (in short CCI) of India denied to pass any immediate stay on the operations of CCI- respondent and stated that it would pass any order after hearing out other parties. The Tribunal directed the appellant- Google LLC to deposit ten per cent of the penalty amount within three weeks.

The Appellate Tribunal has issued notices to CCI and has directed to put up the matter on 13 February for hearing with respect to interim stay.

Earlier the tech-giant had filed a petition to the NCLAT, challenging the order passed by CCI on Google abusing its dominant position in multiple markets in the Android mobile device ecosystem. Google contended that the verdict is an impediment for Indian users and will make such devices more expensive in the country.

In its appeal, Google cited Start-ups testimonials raising 'concerns' over the CCI ruling. Google had challenged the findings of CCI as "patently erroneous" and ignoring "the reality of competition in India, Google's procompetitive business model, and the benefits created for all stakeholders."

CCI's order had been described as "fraught with substantive, analytical, and procedural errors including inter alia ignoring exculpatory evidence, statements from Indian OEMs and developers."

In October, 2022 the CCI had imposed a penalty of Rs. 1,337.76 crore on Google as it found the tech-giant being engaged in anti-competitive practices for android mobile devices and had ordered the appellant to desist and stop itself from various unfair business practices.

In October 2022, in its second ruling CCI penalised Google with a fine of Rs. 936.44 crore for abusing its dominant position with respect to its Play Store policies. Consequently, in November 2022 the tech-giant decided to 'pause' the enforcement requirement for developers to use Play Store's billing system for the buying digital goods and services for transactions by users in India while reviewing legal options due to CCI's ruling.

The Appellate Tribunal ruled, "be that as it may, once order was passed in the month of October, had there been any such urgency it was expected that the appellant would have approached this tribunal forthwith. However, in this case no such urgency was shown in filing of the appeal and as such the appellant may not be permitted to insist for interim order, that too once we are giving short date for final hearing of the appeal."

The Tribunal was of the opinion that considering there was a voluminous nature of appeal and the fact that date of final hearing is already fixed on 3 April, 2023, hence there was no need to pass any interim order.

Presently, the big-tech has filed an appeal before the Supreme Court against the NCLAT order declining its plea for interim order.