Start-up industry body ADIF said that the NCLAT order upholding a penalty on Google validates the global technology giant's abuse of its dominant position by bundling Android OS and Play Store with its apps is real and regressive for the Indian startup ecosystem.

The NCLAT (National Company Law Appellate Tribunal) has upheld the orders of the fair trade regulator CCI imposing a penalty of Rs 1,337.76 crore on tech major Google in the Android mobile devices case, with some modifications.

"ADIF welcomes NCLAT order, as it cements the fact that the abusive dominance by Google due to its bundling of Android OS and Play Store with its own apps is real and regressive for the Indian start-up ecosystem," Alliance of Digital India Foundation (ADIF) said in a statement.

The start-up body said that the mandatory pre-installation of Gmail, Chrome, Search, Maps and Youtube creates entry barriers, and price asymmetry and restricts innovation in these segments.

"Also, the agreements by Google with OEMs are anti-competitive in nature and limit technical and scientific developments in the market," ADIF said.

The start-up body said that "Google lagaan", by the mandatory imposition of up to 26 per cent commission to app developers from April 26, 2023, is another major impediment in the growth of Indian start-ups, as it would take around a third of revenue, thus impacting their sustainability.