Guwahati, March 29: In a major setback for tech-giant Google, the National Law Appellate Tribunal (NCLAT) has upheld the fine of Rs 1,337 crore imposed on the search giant by the Competition Commission of India (CCI) for misusing its dominant position in the android market.
While holding that CCL investigation did not violate principles of natural justice, the tribunal set aside certain directions issues by CCL.
Google has been given 30 days by NCLAT to pay Rs 1,337-crore fine and implement the order.
Last month, Google submitted before the NCLAT that there had been an “unfair imposition” by the CCI on its mobile app distribution agreement with device makers, as it did not restrict the device makers from installing other apps, including those of rivals.
The NCLAT, an appellate authority for orders passed by the CCI, had started its hearing in the Android matter on February 15 following a directive by the Supreme Court.
While arguing the matter before the appellate tribunal, Google said that the pre-installation of its apps on devices through a Mobile Application Distribution Agreement (MADA) was not “unfair” as there was no restriction from installing other apps and enough space available for them.
The tribunal on Wednesday said that CCI's findings of Google's anti-competitive conduct were correct and the company was also liable to pay the fine. NCLAT, however quashed four of the 10 antitrust remedies that had been imposed on Google to change its business model.
Among the reliefs, Google will now not need to allow hosting of third-party app stores inside Play Store, as had been previously ordered by the CCI.
On October 20 last year, the CCI slapped a penalty of ₹1,337.76 crores on Google for anti-competitive practices in relation to Android mobile devices. The regulator also ordered the Internet major to cease and desist from various unfair business practices.