Google-CCI Dispute: Supreme Court to Hear Rs. 1338 Cr Fine Case on April 30

Google-CCI Dispute - Supreme Court - Hear - Fine Case - taxscan

The Supreme Court announced on Monday that it will commence hearings on April 30, 2024 in the cross-appeals filed by both Google and the Competition Commission of India ( CCI ) concerning the antitrust case.

A bench led by Chief Justice DY Chandrachud has scheduled the matter for final disposal on the said date, noting that additional time is required for arguments due to the complex nature of the case, with several key aspects being considered for the first time.

Google has lodged an appeal challenging a portion of the National Company Law Appellate Tribunal‘s ( NCLAT ) March 29 order, which upheld the ₹ 1,337-crore fine imposed on the tech giant. Additionally, Google seeks to contest the annulment of six out of the ten directives issued by the anti-trust body to alter its business model in response to alleged anti-competitive behaviour within the Android ecosystem.

Senior lawyer Harish Salve, representing Google, highlighted that the case introduces novel legal questions for the court’s consideration. Despite each party requesting four days to present their arguments, the court’s schedule constraints led to the postponed initiation of the case.

On the other hand, the CCI has also filed appeals challenging specific aspects of the NCLAT’s judgment. This includes contesting the direction that necessitates an “effect analysis” under Section 4 of the Competition Act to establish abuse of dominance, with the tribunal proposing an evaluation of whether the conduct in question is anti-competitive.

The NCLAT had, on March 29, partially upheld the CCI’s October 20, 2022 order, acknowledging that Google had abused its dominant position in online search and the Android app store. The CCI had directed Google to refrain from denying access to its play services application programming interface and had issued directives related to app developers’ distribution rights. However, the NCLAT overturned some of these directives, deeming them unsustainable.

The legal battle stems from the CCI’s imposition of a ₹1,337.76-crore fine on Google in October 2022, citing antitrust violations associated with its Android mobile operating system. The regulatory body emphasised fair access for all market players and highlighted concerns about Google’s dominance in online search restricting entry for competing applications. The NCLAT’s partial confirmation of the CCI’s ruling in March 2023 prompted both parties to appeal certain aspects, setting the stage for the upcoming hearings in the Supreme Court.

Recently, the Madras High Court rejected the appeals of the Indian Startups including Bharat matrimony and Unaccademy on Google’s app billing policy. However, Google was directed not to delist the applications for 3 weeks. The court had previously asserted that the matter squarely fell within the jurisdiction of the Competition Commission of India (CCI). Undeterred by the initial dismissal, the startups pursued appeals, only to face further setback with the dismissal by the division bench.

Read More: Madras HC Rejects Indian Startups’ appeals on Google’s App Billing; Directs no delisting of applications for 3 weeks

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