Google has challenged a 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.
The Competition Commission had 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.
Google has now approached the National Company Law Appellate Tribunal (NCLAT) challenging the CCI’s order.
A Google spokesperson said: “We have decided to appeal the CCI’s decision on Android as we believe it presents a major setback for our Indian users and businesses who trust Android’s security features, and potentially raising the cost of mobile devices.”
“We look forward to making our case in the NCLAT and remain committed to users and partners,” the spokesperson added.
Android has greatly benefitted Indian users, developers and original equipment manufacturers (OEMs) and powered India’s digital transformation, the company said.
Google has sought a stay on the order, sources said, adding that the company believes that CCI failed to appreciate strong evidence on record from OEMs, developers and users demonstrating that the open Android business model supports competition for the benefit of all stakeholders, including in India specifically.
The CCI decision exposes Indian users to unprecedented security risks, and will make Android devices in India more expensive, less functional and less safe than they are today, the sources claimed.
Sources aware of the company’s stance said Google believes that the ruling will harm Indian developers whose costs will increase.
Appeals against CCI orders can be filed in the appellate tribunal NCLAT. Google was fined over Rs 2,200 crore in two CCI rulings less than a week apart in October.
In its second ruling against Google, the Competition Commission had slapped a penalty of Rs 936.44 crore on the company for abusing its dominant position with respect to its Play Store policies.
Beer makers lose
The NCLAT on Friday upheld the Rs 873-crore penalty imposed by fair trade regulator CCI on UBL and other beermakers.
A two-member bench said after examining the materials and considering the arguments, it was of the opinion that “appellants had already admitted in the leniency application regarding their involvement in the cartelisation”.
Referring to the batch of petitions moved by the beermakers before the CCI seeking reduction in penalty, the NCLAT said: “Lesser penalty application is like an admission of guilt in a cartel.”
The CCI on September 24,2021, imposed penalties of over Rs 873 crore on UBL, Carlsberg India, All India Brewers’Association and 11 individuals for cartelisation in the sale and supply of beer.
