NCLAT directs Google to pay 10% of Rs 1,337 crore penalty imposed by CCI

CCI penalised Google in October over alleged violations in the Android mobile ecosystem

The National Company Law Appellate Tribunal (NCLAT) on Wednesday directed Google to deposit 10 per cent of the total penalty of Rs 1,337.76 crore imposed by India's antitrust body Competition Commission of India (CCI) in October, as reported by news agency PTI. The penalties were imposed over alleged violations in the Android mobile ecosystem.

A two-member bench, however, declined to grant any immediate stay the operations of Competition Commission of India (CCI) penalty and said it would pass any order after hearing out other parties.

"We are of opinion that at the moment given the voluminous nature of the appeal, there is no need to pass any interim order," the panel said, as reported by Reuters

Now, along with 10 per cent of the total amount, Google will have to take a series of measures directed by CCI. For example, pre-installation of Google applications (apps) on Android phones may not be allowed.

The appellate tribunal issued notices to CCI and directed to list the matter on February 13, for hearing over interim stay.

The NCLAT direction came over a petition filed by Google, challenging the CCI order on the tech giant abusing its dominant position in multiple markets in the Android mobile device ecosystem, saying the verdict is a setback for Indian users and will make such devices more expensive in the country.

On October 20 last year, CCI slapped a penalty of Rs 1,337.76 crore on Google for anti-competitive practices in relation to Android mobile devices. In the October ruling, CCI had also ordered the internet major to cease and desist from various unfair business practices.

CCI had also imposed non-monetary sanctions on Google for allegedly "abusing" its dominant position in several Android markets. It also directed the tech giant to "modify its conduct". 

This was challenged by Google before NCLAT, which is an appellate authority over the CCI against any direction issued or decision made or order passed by the regulator.

In its petition, Google had sought an interim stay over the penalty.

Android has greatly benefitted Indian users, developers, and Original Equipment Manufacturers (OEMs) and powered India's digital transformation, Google had said.

On Tuesday, Google said that CCI had copied parts of its ruling from an earlier European Commission ruling passed against the tech company.  

"Google was worried about the Indian decision as the remedies ordered were seen as more sweeping than the European Commission's landmark 2018 ruling for imposing unlawful restrictions on Android mobile device makers," Reuters reported. It said that there were more than 50 instances of "copypasting", in some cases "word-for-word" in the order. 

(With agency inputs)