NCLAT directs Google to pay 10% of ₹1337.76 cr; refuses to pass interim stay on CCI order

In the Google-Android case, a big setback for Google happens as NCLAT refuses to pass interim stay of CCI order on unfair business practices in the Android mobile device ecosystem.

The Appellate Tribunal admits Google’s appeal, but 10% of the penalty needs to be deposited.

NCLAT has issued no other interim orders. The case has been fixed for final hearing on April 3, 2023.

Google approached the appellate tribunal, NCLAT, on Dec 23 against the CCI order on unfair business practices in the Android.

In October alone, Google was fined over Rs 2,200 crore in two CCI rulings less than a week apart.

Fine imposed

In October, the Competition Commission of India imposed the internet giant Google a hefty fine of Rs 1,337.76 crore for abusing its dominant position in several markets in relation to Android mobile devices.

The commission also ordered the internet giant to stop engaging in a number of unfair business practices.

"We have decided to appeal the CCI's decision on Android as we believe it presents a major setback for our Indian users and businesses who trust Android's security features, and potentially raising the cost of mobile devices", said a Google spokesperson.

"We look forward to making our case in NCLAT and remain committed to users and partners," the spokesperson added.

Android has greatly benefitted Indian users, developers, and OEMs, and powered India's digital transformation, the company said.

Google's steps

Google has sought a stay, sources said, adding 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.

Google is optimistic that the NCLAT will take full account of the evidence on record and the tremendous contribution that Android has made to the massive growth and prosperity of the mobile ecosystem in India, sources said.

Sources asserted that Android had created more choices for everyone, and supports thousands of successful businesses in India and around the world.

According to sources, the CCI decision exposes Indian users to previously unheard-of security risks and will increase the cost, reduce the functionality, and decrease the safety of Android devices in India.