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Google reaches Supreme Court against NCLAT order upholding CCI penalty
Google and CCI have moved the Supreme Court against the NCLAT order

Google reaches Supreme Court against NCLAT order upholding CCI penalty

Jun 27, 2023
05:40 pm

What's the story

The Google v/s Competition Commission of India (CCI) battle has reached the Supreme Court again. Google has appealed India's apex court against the National Company Law Appellate Tribunal (NCLAT) order that upheld CCI's Rs. 1,337.76 crore fine against the tech giant. This is the second time the company has approached the Supreme Court regarding the same issue.

Context

Why does this story matter?

The CCI order imposing monetary and non-monetary sanctions on Google for abusing its dominant position in the Android ecosystem is the root cause of the company's appeal. The order was seen as an end to Google's tight grip over Android. The Supreme Court is the search giant's only remaining recourse. If the court rejects the appeal, Google will have to comply with CCI's directions.

Appeal

Google wants Supreme Court to quash CCI's directives

In March this year, NCLAT upheld the fine imposed by the CCI. It also agreed with six of the 10 non-monetary directives of the competition watchdog. Google has now approached the Supreme Court to quash the reminder of the directives. The company is also arguing it did not abuse its position and should not be liable to pay the penalty.

CCI

CCI has also challenged NCLAT's order in the Supreme Court

It isn't just Google that has a problem with NCLAT's order. Earlier this month, the CCI also moved the Supreme Court. The regulator is challenging a part of the order that asks CCI to conduct an "effective analysis" to prove Google's abuse of its dominant position under Section 4 of the Competition Act. It is unclear when the court will hear both appeals.

NCLAT

CCI did not violate principles of natural justice: NCLAT

NCLAT heard Google's appeal against the CCI order after the Supreme Court directed it to dispose of the company's application by March 31. During the hearing, Google argued that CCI's investigation violated the principles of natural justice. The appellate tribunal held that it did not. It also said that Google abused its dominant position by imposing unfair conditions on OEMs.

Partial victory

Google scored a partial victory against CCI

The partial victory it scored in the appeal before NCLAT was massive for Google. The tribunal set aside the directive to allow the distribution of third-party apps through the Play Store. Google will also not need to allow users to uninstall its pre-installed apps. The tribunal also quashed the directive allowing sideloading, which involves downloading apps from outside an app store.