NCLAT Directs Google to Pay 10% of CCI’s Rs.1337 Crore Penalty for Now

The National Company Law Appellate Tribunal (NCLAT) directed Google on Wednesday to deposit 10% of the total penalty of Rs 1,337.76 crore imposed by India’s antitrust body, the Competition Commission of India (CCI) in October as per reports. The fines were levied in connection with alleged violations in the Android mobile ecosystem.

A two-member bench granted Google’s petition against the Competition Commission of India (CCI) penalty. It, however, declined to grant an immediate halt to the operations, stating that any order would be issued after hearing from other parties.

The panel stated, “We are of the opinion that at this time given the extensive nature of the appeal, there is no need to pass any interim order.”

Now, in addition to paying 10% of the total sum, Google will also be required to follow CCI’s instructions for a number of actions. For instance, it might not be possible to pre-install Google applications (apps) on Android phones.

The appellate tribunal has sent notices to CCI and ordered that the matter be listed for hearing on February 13 regarding the temporary stay of the regulator’s order while the matter is pending before it.

Penalty by CCI

The NCLAT decision followed a petition filed by Google, which contested the CCI ruling that the tech giant had abused its dominant position in a number of markets within the Android mobile device ecosystem. Google argued that the ruling was unfair to Indian users and would increase the cost of such devices there.

The CCI fined Google Rs. 1,337.76 crore on October 20 of last year for engaging in anti-competitive behaviour with regard to Android mobile devices. The internet giant had also been ordered to stop engaging in a number of unfair business practises by CCI in the ruling from October.

As punishment for allegedly “abusing” its dominant position in a number of Android markets, CCI had also imposed non-monetary sanctions on Google. The tech behemoth was also told to “modify its conduct”.

Google challenged this before the NCLAT, which is the CCI’s appellate authority against any directives, judgements, or orders made by the regulator.

Google had requested an interim stay of the penalty in its petition.

According to Google, Android has greatly benefited Indian users, developers, and Original Equipment Manufacturers (OEMs) and has been the driving force behind India’s digital transformation.

Additionally, it was alleged that the Director General (DG) had copied and pasted sentences from decisions made by foreign judges.

For Official Order Download PDF Given Below: