NCLAT denies interim relief to Google on Rs 936 crore CCI order

The NCLAT agreed to hear Google on April 17 and asked the tech giant to deposit 10% of the CCI fine with the NCLAT registry within four weeks.

Google had approached the NCLAT seeking a stay on the Rs 936 crore fine as well as CCI’s directions that have asked the company to cease and desist from abusive practices in the Play Store.

On October 25, the CCI imposed a penalty of Rs 936.44 crore on Google and issued a cease-and-desist order in which the regulator prescribed eight corrective measures that Google Play needs to implement to correct the anti-competitive practices.

At the core of the case is a policy of Google Play store that requires app developers to exclusively use Google Play’s Billing System (GPBS) for all customer billings.

This system has to be used not only for receiving payments from the apps but also for in-app purchases made by customers. Any App developer who doesn’t use GPBS is not allowed to list his product on the Google Play store.

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Also read | Why CCI has penalised Google again with Rs 936 crore penaltyThe whole case began in 2020 when Google enforced a 30% commission for all Play Store transactions. The move was heavily criticised by app developers globally and in India for stifling competition.

A group of app developers, in addition to Match Group (owner of dating sites such as Tinder), filed a complaint with the antitrust body, which began probing the commissions angle and if Google was blocking rival payment options in its billing process.

Recently, the NCLAT asked Google India to deposit 10% of the Rs 1,337 crore penalty imposed on it by the Competition Commission of India (CCI) for abuse of dominance, while refusing to grant a stay on the entirety of the penalty imposed by the competition regulator.

The CCI had on October 20 imposed a fine of Rs 1,337 crore on Google for abuse of its dominant position in Android mobile device markets.

(Illustration by Rahul Awasthi)