SC pushes hearing of Google’s appeal against CCI’s Rs 1,338 cr penalty to Jan 2024

SC pushes hearing of Google’s appeal against CCI’s Rs 1,338 cr penalty to Jan 2024

The Supreme Court’s decision to postpone the hearing of Google’s appeal against the order of the National Company Law Appellate Tribunal (NCLAT), which upheld a hefty Rs 1,338 crore penalty imposed by the Competition Commission of India (CCI) for anti-trust violations, marks a significant development in this ongoing legal battle.

Originally scheduled to commence on October 11, the hearing was delayed to January 2024 due to the Supreme Court’s engagement with constitution bench hearings. This case has garnered attention not only for its financial implications but also for the broader implications on competition law and regulations in the Indian market. Google is facing allegations of anti-competitive practices, and the NCLAT’s decision to uphold CCI’s penalty is a crucial moment in this legal saga, with the Supreme Court now set to determine the ultimate outcome of this high-stakes dispute.

In a recent development, Senior advocate Harish Salve, representing Google, and Additional Solicitor General Venkatraman, representing the Competition Commission of India (CCI), jointly sought a new date for the listing of the case, as it became apparent that the case would not be taken up for hearing on October 10 as originally scheduled. Chief Justice of India (CJI) DY Chandrachud, in an oral indication, conveyed that the case would be listed for hearing in the last week of January. Importantly, he also made it known that he would ensure his schedule remains free on the day designated for the hearing.

This situation arises from a pivotal legal battle that has been ongoing since March 2023 when the National Company Law Appellate Tribunal (NCLAT) partially upheld the CCI’s order pertaining to Google’s alleged abuse of dominance in the Android ecosystem. While doing so, the NCLAT also upheld the substantial penalty of Rs 1,338 crore imposed by the CCI.

This decision was a significant development in the case, as it confirmed the CCI’s stance on Google’s anti-competitive behavior. Now, with the Supreme Court’s upcoming hearing in January 2024, the fate of this case hangs in the balance, and the final judgment will have far-reaching implications for competition law and regulations in India.

The National Company Law Appellate Tribunal (NCLAT) made several key determinations in its ruling on Google’s alleged anti-competitive practices in the Android mobile device ecosystem. First, it affirmed that the Competition Commission of India’s (CCI) order did not suffer from any confirmation bias, suggesting that the CCI’s decision was not influenced by any preconceived notions or unfair bias against Google.

One of the central findings of the NCLAT was that Google’s practice of requiring original equipment manufacturers (OEMs) to pre-install its entire suite of 11 applications on Android devices amounted to the imposition of unfair conditions. This practice was seen as an abuse of Google’s dominance in the market.

However, the NCLAT also set aside four significant directions that had been issued to Google by the CCI:

1. The NCLAT determined that Google’s warnings (sideloading) to users when they downloaded applications directly from websites or unknown sources were fair and did not constitute anti-competitive behavior.

2. It ruled that Google was not obligated to share its proprietary application program interface (API) with third parties. This decision upheld Google’s right to control access to its API, which is crucial for app developers.

3. The NCLAT found that Google’s decision to not permit third-party application stores on its Play Store, with the aim of preventing malware, was reasonable and within its rights.

4. It also allowed Google to restrict the uninstallation of the Google Suite apps on Android phones, which means that users would not be able to easily remove these pre-installed apps.

It’s important to note that while the NCLAT’s decision partially favored Google, the CCI challenged this ruling at the Supreme Court. This ongoing legal battle underscores the complex and evolving nature of competition law in the context of the tech industry.

In October 2022, the CCI had originally concluded, based on an investigation report and documents from both sides, that Google was abusing its dominant position in multiple markets within the Android mobile device ecosystem. The CCI’s order called for Google to cease and desist from its alleged anti-competitive practices and imposed a substantial penalty of Rs 1,338 crore, which has been a focal point of contention throughout the legal proceedings.