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Sunday, December 22, 2024

CCI challenges NCLAT’s decision to uphold Google’s fine of Rs 1,338 crore

The CCI has challenged the NCLAT’s decision, which upheld Google’s fine of Rs 1,338 crore. The appeals court threw out the CCI’s order to Google, which said it couldn’t block access to its Play services API or sell stores through Google’s Play Store.

The Competition Commission of India (CCI) has challenged in the Supreme Court (SC) a part of the National Company Law Appellate Tribunal’s (NCLAT) decision. The NCLAT upheld the order under which Google had to pay a fine of Rs 1,338 crore. The tech giant was accused of taking advantage of the fact that it had the most power in the Android ecosystem. But it ignored four of the ten ways that Google was told to change how it does business.

The CCI has directly challenged the NCLAT’s directive, which says that to prove abuse of power under Section 4 of the Competition Act, the competition watchdog must do an “effect analysis.” This study is used to decide if the action in question hurts competition or not.

The appeals court agreed with Google’s claim that Section 4 makes it clear that unfair prices or conditions can’t be used to compete. It also said that the goal of competition law is to stop things that hurt the industry.

Google said that for a company’s actions to be considered offensive, they must hurt competition and an effective study should be done. But the CCI didn’t agree with this point of view.

Google hasn’t said anything yet about what the NCLAT said about it. Google and other parties have filed objections with the SC to make sure that no orders are made without their knowledge.

The CCI told Google that app developers could use third-party billing or payment handling services for app and in-app sales starting in October 2022. The competition panel also said that the tech giant had to pay a fine.

In March, the NCLAT gave Google 30 days to do what the CCI told it to do with the other measures, besides the four that were set aside.

The appeals court threw out the CCI’s order to Google, which said that Google couldn’t block access to its Play services application programming interface (API) in a way that hurts other equipment makers, app developers, and rivals.

It also turned down a CCI rule that would have let makers of app shops sell their stores through Google’s Play Store. The appeals court said that these orders were “unsustainable.”

The Competition Commission of India (CCI) has challenged a part of the National Company Law Appellate Tribunal’s (NCLAT) decision, which upheld the order under which Google had to pay a fine of Rs 1,338 crore. The appeals court agreed with Google’s claim that Section 4 of the Competition Act makes it clear that unfair prices or conditions can’t be used to compete.

The appeals court also threw out the CCI’s order to Google, which said that Google couldn’t block access to its Play services API in a way that hurts other equipment makers, app developers, and rivals.

Nitin Gohil
Nitin Gohil
A Mumbai-based tech professional with a passion for writing about his field: through his columns and blogs, he loves exploring and sharing insights on the latest trends, innovations, and challenges in technology, designing and integrating marketing communication strategies, client management, and analytics. His favourite quote is, "Let's dive into the fascinating world of tech together."

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