NCLAT Admits Google Plea Against CCI's Rs 1,338-Crore Penalty, Directs Tech Giant To Pay 10% For Now

The National Company Law Appellate Tribunal (NCLAT) on Wednesday directed Google to pay 10 per cent of the Rs 1,337.76-crore penalty imposed on the tech giant by the Competition Commission of India (CCI). The NCLAT has also agreed to hear Google’s plea challenging the CCI penalty for alleged violations in the Android mobile device ecosystem.

On October 20, the CCI had imposed a fine of Rs 1,337.76 crore on Google for abusing its dominant position in multiple markets in relation to Android mobile devices, and ordered the internet major to cease and desist from various unfair business practices.

A two-member bench of the NCLAT, however, declined to grant any immediate stay on the operations of the CCI penalty and said it would pass any order after hearing out other parties.

The appellate tribunal has issued notices to CCI and directed to list the matter on February 13, for hearing over interim stay.

The NCLAT direction came over a petition filed by Google, challenging the CCI order on the tech giant abusing its dominant position in multiple markets in the Android mobile device ecosystem, saying the verdict is a setback for Indian users and will make such devices more expensive in the country.

On October 20 last year, CCI slapped a penalty of Rs 1,337.76 crore on Google for anti-competitive practices in relation to Android mobile devices. In the October ruling, CCI had also ordered the internet major to cease and desist from various unfair business practices.

This was challenged by Google before NCLAT, which is an appellate authority over the CCI against any direction issued or decision made or order passed by the regulator.

In its petition, Google had sought an interim stay over the penalty.

Android has greatly benefitted Indian users, developers, and Original Equipment Manufacturers (OEMs) and powered India’s digital transformation, Google had said.

It also alleged that the Director General (DG) has copy-pasted paragraphs from the rulings of foreign authorities agrees to hear Google’s plea challenging CCI order slapping Rs 1337 crores penalty for alleged violations in the Android mobile device ecosystem. Tribunal issued notice to CCI and sought its response on Google’s plea.

(With Inputs From PTI)

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