Google's appeal against the Competition Commission of India's order dated October 25, 2022 has been accepted by the National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, consisting of Justice Rakesh Kumar (Judicial Member) and Dr. Alok Srivastava (Technical Member), as part of the resolution of an appeal filed in Alphabet Inc. v. Competition Commission of India & Ors. The Bench has decided against providing any temporary respite. The matter will next be heard on April 17, 2023.

In a hearing on January 11, 2023, the NCLAT Bench accepted Google's appeal, with the condition that 10% of the Rs. 936.44 Crore penalty sum be deposited. The Bench also declined to provide any temporary respite. The matter will next be heard on April 17, 2023.

A restructuring of Google resulted in the creation of Alphabet Inc., a holding company for a global technological giant, on October 2, 2015. It became the parent corporation of several former Google subsidiaries in addition to Google itself. A fully owned subsidiary of Alphabet Inc., Google LLC (previously Google Inc.) is a Delaware limited liability company. Google offers a range of IT-related services in addition to an online search engine. Chrome, Gmail, Google Drive, Google Maps, Android, Google Play, Search, and YouTube are among Google's primary economic ventures. An indirect subsidiary of Google LLC is Google India Private Limited ("Google India").

The distribution of apps to users through app stores has become a must for app creators. The primary platform for Android mobile app developers is Google's Play Store, which enables its owners to profit from the apps that are released to the market.

Sangeeta Verma, Mr. Bhagwant Singh Bishnoi, and Mr. Ashok Kumar Gupta made up the Competition Commission of India ("CCI") Bench, which decided on a complaint submitted in XYZ (Confidential) v Alphabet Inc.& Ors., Case No. 07 of 2020 alleging Google had abused its dominant position.

The sale of in-app digital products is essentially how app developers make money off of their ideas. According to Google's Play Store regulations, app developers must use the Google Play Billing System (GPBS) to receive payments from the Play Store for their apps and in-app purchases. The Play Store will not let app developers to list their products there if they do not adhere to Google's GPBS policy. As a result, they miss out on a sizable group of potential clients who use Android devices.

The CCI Bench viewed the requirement that users of paid apps and in-app purchases need the GPBS in order to access the Play Store as being arbitrary and devoid of any valid business purpose.

The CCI Bench determined that Google had breached the following provisions of Section 4 of the Competition Act, 2002:

In addition to issuing a cease-and-desist order, the CCI Bench used its authority under Section 27 of the Competition Act to fine Google Rs. 936.44 crore for abusing its dominant position with regard to its Play Store policy. The Commission also gave Google a deadline by which to change its behaviour.

Google appealed the CCI order given in January 2023 that imposed a fine of Rs. 936.44 crore on the company before the NCLAT.

Case Title: Alphabet Inc. & Ors. v Competition Commission of India & Ors.
Case No.: Competition App. (AT) No. 4 of 2023