NCLAT Directs Google To Deposit 10% Penalty Imposed By CCI


Google was penalized by CCI in October over an alleged violation in the android mobile ecosystems, The NCLAT directed Google deposit 10% penalty

New Delhi: On Wednesday, the National Company Law Appellate Tribunal (NCLAT) ordered Google to pay 10% of the total fine of Rs. 1,337.76 crore that India’s antitrust agency Competition Commission of India (CCI) imposed on the company in October reported PTI. The penalties were imposed over alleged violations in the Android mobile ecosystem.

However, a two-member bench refused to give a stay of execution of the Competition Commission of India (CCI) penalty and stated that it would issue any order only after hearing from all parties.

“We are of opinion that at the moment given the voluminous nature of the appeal, there is no need to pass any interim order,” the panel said, as reported by Reuters

Now, in addition to paying 10% of the entire sum, Google will also be required to follow CCI’s instructions for a number of actions. For instance, it might not be possible to pre-install Google programs (apps) on Android phones.

The appeal tribunal sent letters to CCI and instructed them to list the case for a hearing for an interim stay on February 13.

The NCLAT decision followed a petition filed by Google, which contested the CCI ruling that the tech giant had abused its dominant position in a number of markets within the Android mobile device ecosystem. Google argued that the ruling was unfair to Indian users and would increase the cost of such devices there.

The CCI fined Google Rs. 1,337.76 crore on October 20 of last year for engaging in anti-competitive behavior with regard to Android mobile devices. The internet giant had also been ordered to stop engaging in a number of unfair business practices by CCI in the judgement from October.

As punishment for allegedly “abusing” its dominating position in a number of Android markets, CCI has also imposed non-monetary restrictions on Google. The IT behemoth was also told to “change its conduct”.

Google contested this before the NCLAT, which is the CCI’s appeal authority against any directives, judgements, or orders made by the regulator. Google had requested an interim suspension of the penalty in its petition.

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