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Supreme Court has 'good news' for Google; agrees to hear company's appeals against...

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The Supreme Court has agreed to hear a series of cross-appeals from Google and other parties regarding a lower tribunal’s ruling. The appeals were also made by the antitrust watchdog, the Competition Commission of India (CCI) and other parties like the Alliance Digital India Foundation. They challenge a March order from the National Company Law Appellate Tribunal (NCLAT), which alleges that the tech giant abused its dominant position with its Play Store policies. According to a report by the Economic Times, the apex court has confirmed that it will hear the case in November.

The appeals filed by Google and its related companies, which include Alphabet Inc, Google Ireland, Google India and Google India Digital Services, have challenged the NCLAT hearing that mostly aligned with CCI’s findings of the company abusing its dominant position in multiple markets in the Android mobile device ecosystem through its Play Store policies and engaged in unfair promotion of Google Pay, thereby violating Section 4(2)(e) of the Competition Act.

Apart from this, Google is also appealing an NCLAT order from May that corrected a previous "inadvertent error". This corrected order reinstated two key directives from the CCI, mandating that the company disclose its data policies and stop using billing data for competitive gain.


Why CCI penalised Google in October 2022


In October 2020, CCI imposed a penalty on Google, accusing it of abusing its dominant position in segments such as online search and the Android app store. The watchdog fined the company Rs 936 crore for enforcing the use of its Google Play Billing System for app-related purchases, while exempting its apps like YouTube from similar charges. The CCI also instructed Google to stop these practices and allow third-party billing options to ensure greater data transparency.

The appellate tribunal later upheld the CCI’s finding that Google imposed unfair and discriminatory conditions on developers by mandating the use of its billing system for paid apps and in-app purchases.

However, it dismissed conclusions around the denial of market access and stifling innovation. The tribunal noted that Google's billing services made up less than 1% of UPI transactions, and said there wasn’t enough evidence to prove it blocked market access or hindered technical growth.

Additionally, the penalty was revised down from Rs 936.44 crore to Rs 216.69 crore, restricting it to revenues linked directly to the Play Store instead of Google's global earnings. The tribunal also dismissed certain aspects of the CCI’s findings, which are now under challenge in the Supreme Court.

Meanwhile, several Indian startups and industry bodies — including People Interactive India (Shaadi.com), Mebigo Labs (Kuku FM), the Indian Broadcasting and Digital Foundation, and the Indian Digital Media Industry Foundation — had further urged the CCI to investigate Google’s practices.


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