Google receives CCI notices after failing to pay penalties

The action came after Google
filed appeals last week against the anti-monopoly watchdog’s verdict on its Android operating system for smartphones.

Sources said since Google had appealed in both cases, the fines become payable only after the court rules on the stay application. They said the demand notices are standard procedure and that there is a 30-day deadline for payment.

Google did not respond to ET’s queries seeking comment.

Rahul Goel, Partner, AnantLaw said the CCI through its orders under Section 27 of the Competition Act, 2002 grants parties 30 days to pay the penalty, from the date of receipt of the order.

However, under Section 53B, any aggrieved person may file an appeal before the National Company Law Appellate Tribunal within a period of 60 days from the date of receipt of the order, he added.

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“Issuance of demand notice after imposition of penalty under Section 27 of the Competition Act is a routine process,” Goel told ET. “Google may seek stay on the demand notice as well as any payment of the penalty amount while filing an appeal against the order of the CCI before the NCLAT.”
The NCLAT may grant any stay (relief) after hearing the parties in detail.

The CCI does have power to issue a demand notice for non-deposit of penalty, said G R Bhatia, Partner, Luthra and Luthra Law Offices India.

“Google is expected to highlight these facts before the NCLAT and get its appeal along with a stay application listed before the expiry of the time stipulated in the demand notice issued by the CCI,” Bhatia said.

Last week, a spokesperson for Google had said that it had decided to appeal the regulator’s decision on Android “as 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.”

On October 20, CCI
imposed a penalty of Rs 1,337.76 crore on Google for abusing its dominant position in multiple markets in relation to Android mobile devices and ordered the internet major to cease and desist from various unfair business practices.

Less than a week later, the regulator fined Google Rs 936.44 crore for abusing its dominant position with respect to its Play Store policies.

The CCI’s verdicts were in line with global regulators who have been coming down heavily on Big Tech firms for their alleged monopolistic practices.