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NCLAT Directs Google To Pay 10% of Rs 1,337.76 Crore Penalty

The bench declined any immediate stay to the operations of the Competition Commission of India's penalty

NCLAT Directs Google To Pay 10% of Rs 1,337.76 Crore Penalty
POSTED ON January 04, 2023 2:36 PM

The National Company Law Appellate Tribunal (NCLAT) directed Google to pay 10 per cent of the Rs 1,337.76 crore penalty imposed on the tech giant by the fair-trade regulator Competition Commission of India (CCI).

The two-member bench declined to grant any immediate stay on the operations of CCI's penalty and said it would pass any order only after hearing out other parties.

The appellate tribunal has issued notices to CCI and directed it to list the matter on February 13, for hearing over interim stay.

The NCLAT direction came over a petition filed by Google, challenging the CCI order on the tech giant abusing its dominant position in multiple markets in the Android mobile device ecosystem. It claimed that the verdict is a setback for Indian users and will make such devices more expensive in the country.

The CCI had imposed a Rs 1,337.76 crore fine on Google in October 2022 for anti-competitive practices in relation to Android mobile devices. In the October ruling, the anti-competition regulator had also ordered the tech major to cease and desist from various unfair business practices.

Google challenged this before NCLAT, which is an appellate authority over the CCI, against any direction issued or decision made or order passed by the regulator.

In its petition, Google had sought an interim stay over the penalty. 

"Android has greatly benefitted Indian users, developers, and Original Equipment Manufacturers (OEMs) and powered India's digital transformation," the company said.

It also alleged that the Director General (DG) has copy-pasted paragraphs from the rulings of foreign authorities.

(with PTI inputs)

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