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Playstore policy: NCLAT rejects Google's plea to stay CCI order to pay Rs 936.44 cr, directs to deposit 10 pc of penalty first
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Image Credit: Pawel Czerwinski via Unsplash

Playstore policy: NCLAT rejects Google's plea to stay CCI order to pay Rs 936.44 cr, directs to deposit 10 pc of penalty first

| @indiablooms | 11 Jan 2023, 11:53 pm

New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Wednesday rejected Google’s appeal to stay the second Competition Commission of India (CCI) order slapping a penalty of Rs 936.44 crore on the US-based tech giant company for abusing its dominant position through its Playstore policies, media reports said.

A two-member Bench of Justice Rakesh Kumar, member (judicial), and Alok Srivastava, member (technical), said Google’s appeal against the CCI order was subject to the tech giant depositing 10 percent of the penalty imposed on it by the antitrust regulator.

Issuing the order, NCLAT directed Google to deposit 10 percent of the penalty with the Registrar in four weeks.

The matter is listed for a final hearing on April 17, the tribunal said, adding that it wouldn't pass an interim order.

Google had approached the NCLAT seeking a stay on the CCI’s October 25 order that imposed a fine of Rs 936.44 crore on it and asked Google to cease and desist from abusive practices in the Playstore.

Representing Google, senior advocate Harish Salve contended that CCI’s order alleges Google with various examples of abuse without discussing appreciable adverse effects on competition (AAEC) of such alleged abuse.

Salve argued that this goes against the Competition Act and case laws.

Appearing for CCI, Samar Bansal and Manu Chaturvedi argued that Google admitted that it was in the process of implementing similar directions as contained in CCI’s order in other jurisdictions such as Europe.

In some cases, such directions involved antitrust findings, and Google did not press for a stay in those jurisdictions and asserted that such conduct on Goggle’s part showed that the tech giant discriminated between India and those jurisdictions.

The case is related to a Google Playstore policy that mandated that all app developers, who used the platform, to use only Google Play’s billing system (GPBS) to get payments from customers as well as from in-app purchases.

Some app developers filed a complaint with CCI when Google started charging a 30 percent commission in 2020 for Playstore transactions.

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