In a setback for Google, an appellate tribunal on Wednesday refused to grant an interim stay on the competition regulator. 936 crore fine on the US tech giant for abusing its dominant position in the market.
National Company Law Appellate Tribunal directed Google to deposit 10 per cent of the fine imposed by Competition Commission of India in a matter connected with play store policies.
A week ago, Google failed to get relief from the NCLAT on a separate Rs. US tech giant fined Rs 1,337.76 crore by CCI for alleged abuse of dominant position Android Smartphone operating system in the country. It was asked to deposit 10 per cent of the fine within four weeks.
Google challenged that order before the Supreme Court, which agreed to hear it on Monday.
Whereas in the first case, CCI had asked Google to give permission in October last year. smart fone In order to let users uninstall apps on the Android platform and choose a search engine of their choice, the regulator had said that the company will take corrective steps on the policies that allow developers to list their apps on its Play Store on Google Play. Forced to use the billing system of
A two-member NCLAT bench comprising Justices Rakesh Kumar and Alok Srivastava on Wednesday issued notice to the CCI and posted the matter for further hearing on April 17, 2023.
A mail sent to Google for comments did not elicit any response.
Senior advocate Harish Salve said the US firm has appealed the Play Store and Android decisions as the commission has failed to take into account the adverse effects it would have on users, developers and manufacturers.
Google, in the hearing before the NCLAT, will attempt to establish that the CCU’s directions jeopardize the technology, security and choice provided by Play and Android.
It will also seek to establish that the Commission failed to consider the benefits of Play and Android for Indian end users, including enabling mobile access (and thereby furthering the goal of increasing teledensity, which is the digital India) as well as protecting end-users from malware and abusive billing practices.
Google’s business model for its Play Store is tied to the business model of app developers. When app developers distribute their apps for free, there is no charge. Where app developers sell their apps or sell digital content within the app to end users, Google receives a service fee.
Google says that this has been done for technical, security and business reasons.
On 25 October, the CCI imposed a fine of Rs 936.44 crore on Google for abusing its dominant position with respect to its Play Store policies. The regulator had also directed the company to cease and desist from unfair trade practices as well as take various measures to address anti-competitive issues within the stipulated time frame.
Google later said that it is “pausing” enforcement of the requirement for developers to use Play’s billing system for the purchase of digital goods and services for transactions by users in India, while it is pending approval from the CCI. Reviews legal options following recent decision by ,
“Following the recent decision of the CCI, we are pausing enforcement of the requirement for developers to use Google Play’s billing system for the purchase of digital goods and services for transactions by users in India, while we continue our Let’s review legal options and make sure we can continue to invest in Android and Play,” Google said in an update on its Help Center page on November 1.
The search engine giant has faced criticism globally for allowing software developers using its App Store to only use its proprietary in-app payment system that takes up to 30 percent commission on purchases made within the app. Is.
Google is also facing a separate probe into its business conduct in the news content and smart TV market in India.
Following the landmark judgments of the CCI, Google filed an appeal before the NCLAT against the two orders.