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NEW DELHI: In a setback to Google, the Supreme Court on Thursday rejected its plea for interim stay on the Competition Commission of India’s (CCI) order slapping Rs 1,338 crore penalty on it for anticompetitive trade practices through the Android mobile operating system despite the tech giant agreeing to put in place some of its EU-compliant trade practices in 45-90 days in India.
A bench of Chief Justice D Y Chandrachud, and Justices P S Narasimha and J B Pardiwala ordered Google to deposit 10% of the penalty within a week and ordered that on deposition of the amount, the National Company Law Appellate Tribunal (NCLAT) would immediately take up hearing of Google’s appeal against CCI’s October 20 order and give itsverdict on or before March 31.
Google had filed an appeal against the CCI order before the NCLAT on December 20. The NCLAT on January 4 had ordered the tech giant to deposit 10% of the penaltyamount and refused stay on the CCI order. It had fixed April 3 for the final hearing on Google’s appeal.
Google’s counsel senior advocate A M Singhvi said Google is dominant in Android ecosystem because of its excellence as its products were non-obtrusive and free for all, which allows competitionand furthers the mobile revolution in India.
CJI Chandrachud posed a series of questions — Why should Google insist on Chrome and its bouquet to be preinstalled in Android phones? Does it not affect the choice of the consumer and original equipment manufacturers (OEMs)? The data showed about the sheer number of Android phones militates the argument that it allows competition. “When you have that kind of penetration and then insist on the bouquet or deny access, which OEM can refuse at the cost of business?”
Singhvi argued that the EU has not touched on 90% of the issues flagged by the CCI, which has rendered a nonconsidered decision. But the CJI said, “EU could be the benchmark and we should not fall behind that benchmark. Look at the width and depth of the Indian mobile market as compared to EU countries. ”
A bench of Chief Justice D Y Chandrachud, and Justices P S Narasimha and J B Pardiwala ordered Google to deposit 10% of the penalty within a week and ordered that on deposition of the amount, the National Company Law Appellate Tribunal (NCLAT) would immediately take up hearing of Google’s appeal against CCI’s October 20 order and give itsverdict on or before March 31.
Google had filed an appeal against the CCI order before the NCLAT on December 20. The NCLAT on January 4 had ordered the tech giant to deposit 10% of the penaltyamount and refused stay on the CCI order. It had fixed April 3 for the final hearing on Google’s appeal.
Google’s counsel senior advocate A M Singhvi said Google is dominant in Android ecosystem because of its excellence as its products were non-obtrusive and free for all, which allows competitionand furthers the mobile revolution in India.
CJI Chandrachud posed a series of questions — Why should Google insist on Chrome and its bouquet to be preinstalled in Android phones? Does it not affect the choice of the consumer and original equipment manufacturers (OEMs)? The data showed about the sheer number of Android phones militates the argument that it allows competition. “When you have that kind of penetration and then insist on the bouquet or deny access, which OEM can refuse at the cost of business?”
Singhvi argued that the EU has not touched on 90% of the issues flagged by the CCI, which has rendered a nonconsidered decision. But the CJI said, “EU could be the benchmark and we should not fall behind that benchmark. Look at the width and depth of the Indian mobile market as compared to EU countries. ”
Deposit 10% fine imposed: Supreme Court to Google
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