Google Appeals to SC: Challenges NCLAT's upholding of ₹1,337 crore penalty for anti-competitive behavior

Google Appeals to SC: Challenges NCLAT's upholding of ₹1,337 crore penalty for anti-competitive behavior

Google has filed an appeal with the Supreme Court of India against the decision of the National Company Law Appellate Tribunal (NCLAT) upholding a penalty of ₹1,337.76 crore imposed by the Competition Commission of India (CCI). The penalty was imposed on Google for engaging in anti-competitive behavior in the Android ecosystem. A Google spokesperson stated that while the NCLAT correctly recognized the need to prove harm for anti-competitive behavior, it failed to apply this requirement to certain directions issued by the CCI.

The NCLAT had set aside four key directions issued by the CCI, which were as follows:

  1. Google should not deny access to its play services APIs to disadvantage Original Equipment Manufacturers (OEMs), app developers, and its competitors.
  2. Google should not restrict the uninstallation of its pre-installed apps by users.
  3. Google should allow app store developers to distribute their app stores through Google Play Store.
  4. Google should not restrict the ability of app developers to distribute their apps through side-loading.

In its order, the Appellate Tribunal found that the CCI's investigation into Google's conduct did not violate the principles of natural justice. It also concluded that the pre-installation of Google Mobile Services (GMS) on Android phones amounted to unfair use and restricted technical and scientific development.

In addition to the penalty, the CCI directed Google to cease participating in anti-competitive practices and modify its conduct within a specified timeframe. The CCI's directions included ensuring that OEMs are not forced to pre-install a bundle of applications, decoupling the licensing of Play Store from the requirement of pre-installing Google search services and other apps, and prohibiting Google from offering incentives for exclusivity of its search services.

Google's appeal to the Supreme Court challenges the NCLAT's decision and seeks a review of the penalty and directions imposed by the CCI.

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