NEW DELHI: In a big setback for Google, the Supreme Court of India on Thursday refused to hear the plea of Google against National Company Law Appellate Tribunal’s (NCLAT) order that refused to give an interim stay on Rs 1,337 crore penalty on it. The court has directed NCLAT to decide on the appeal, and dispose of it by March 31, 2023. However, the apex court gave seven days time to the American tech giant to deposit 10% of its total penalty.
The bench headed by Chief Justice DY Chandrachud said since the appeal is pending before NCLAT, it is desisting from expressing any opinion (on the merit of the CCI order). “We are not inclined to interfere with NCLAT’S order. We request the NCLAT to dispose it of within March 31. Any expression of opinion of this court on merits would affect the case before NCLAT.” Appearing for Google, senior advocate AM Singhvi had argued that the CCI had no right to dictate how Google carried out its business. He contended that if consumers chose Google, it did not establish abuse of dominance.
The SC bench in its order said findings by CCI can’t be said to be without jurisdiction or with manifest error.” In October 2022, the Competition Commission of India (CCI) fined Google Rs 1,337.76 crore for exploiting its dominant position with respect to Android. The competition watchdog has also asked Google to cease and desist from indulging in anti-competitive practices. The order said Google has leveraged its dominant position in the app store market for Android OS to enter as well as protect its position in non-OS specific web browser market through Google Chrome App and thereby contravened the provisions of Section 4(2)(e) of the Act.
However, Google maintained CCI’s ruling is a setback for the entire Android ecosystem in India, which has been built and nurtured by Google over last decade. It said the ruling could lead to increased costs for consumers, reduced choice and competition, and less innovation. Subsequently, the tech giant approached NCLAT against the CCI order, which refused to stay the latter’s order. Later on Google filed its petition in the Supreme Court.
Experts have termed the SC order a landmark judgment. Naval Chopra, Partner, Competition Law Practice, Shardul Amarchand Mangaldas & Co, says: “CCIs order, upheld by the SC today, helps take Android to its original mission, of being an open source, free, software, absent Google’s restrictions.”