Introduction:
The Supreme Court of India has scheduled the final disposal of the appeal filed by Google on October 10, 2023. This appeal challenges the penalty imposed by the Competition Commission of India (CCI) on Google for abusing its dominant position in the Android OS app store market. The National Company Law Appellate Tribunal (NCLAT) had upheld the CCI’s decision to impose a penalty of Rs. 1337.76 Crores on Google.
Background:
Google LLC, a subsidiary of Alphabet Inc., is a leading tech giant providing various information technology services, including its widely used internet search service. Android, an operating system for smartphones, was acquired by Google in 2005. In this case, consumers of Android-based smartphones lodged a complaint against Google, alleging abuse of dominant position in the mobile operating system markets.
CCI Verdict:
After examining Google’s Android mobile operating system and proprietary applications, such as Play Store, Google Search, Chrome, and YouTube, the CCI found that Google had imposed unfair conditions on device manufacturers. The mandatory pre-installation of the entire Google Mobile Suite (GMS) and their prominent placement prevented the installation of competing search apps, thereby violating Section 4(2)(a)(i) of the Competition Act. The CCI concluded that Google abused its dominant position in both the online search and Android OS app store markets.
NCLAT Verdict:
Google appealed the CCI’s decision before the NCLAT, which dismissed the appeal on March 29, 2023, upholding the penalty imposed by the CCI. The NCLAT observed that the CCI’s investigation did not violate the principles of natural justice. However, the NCLAT set aside certain directions of the CCI, including restrictions on the denial of access to Google Play Services APIs, un-installing pre-installed apps, and the distribution of app stores through Play Store. Google was also prohibited from restricting app developers from distributing their apps through side-loading.
Upcoming Supreme Court Hearing:
The Supreme Court bench, consisting of Chief Justice DY Chandrachud, Justice PS Narasimha, and Justice Manoj Misra, has decided to list the appeal for final disposal on October 10, 2023. The counsels involved are required to file brief notes and exchange issues by October 3, 2023. Additionally, the parties must prepare soft copies of a convenience compilation, with Mr. Samar Bansal serving as the nodal counsel.
Conclusion:
The appeal filed by Google against the penalty imposed by the CCI will be finally heard by the Supreme Court on October 10, 2023. This case highlights the allegations of Google’s abuse of dominant position in the Android OS app store market, resulting in the denial of market access for competing search apps.
Sources:
1. https://www.mca.gov.in/Ministry/actsbills/pdf/The_competition_Act_2002.pdf
2. https://www.scconline.com/blog/post/2023/03/29/penalty-on-google-nclat-sets-aside-certain-directions-by-cci-but-upholds-inr-1337-crore-penalty-on-google-for-abuse-of-dominant-position-in-android-mobile-device-ecosystem-legal-news-legal-researc-up/.
3. https://www.livelaw.in/top-stories/google-vs-cci-supreme-court-agrees-to-hear-googles-plea-against-nclat-order-to-deposit-10-penalty-on-jan-16-218650.
4. https://www.moneycontrol.com/news/business/google-cci-android-monopoly-supreme-court-nclat-legal-indian-apps-9915561.html.
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