NCLAT Upholds CCI’s Penalty on Google for Anti-Competitive Conduct in Android Ecosystem

In a recent ruling, the National Company Law Appellate Tribunal (NCLAT) upheld the penalty of INR 1,337 crore imposed on Google by the Competition Commission of India (CCI) for its anti-competitive conduct in the Android ecosystem. However, the appellate tribunal has set aside four critical directions of the ten non-monetary directives issued by CCI in its Android ruling of October 20, 2022, that would have forced Google to change its business model.

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The NCLAT bench has given Google 30 days to pay the fine and comply with the remaining six directions. These six non-monetary directions include allowing original equipment manufacturers (OEMs) to choose from Google’s proprietary applications to be pre-installed and deciding the placement of pre-installed apps on their smart devices. Additionally, Google shall not offer any incentives or enter into any arrangement with OEMs for ensuring exclusivity for its search services.

Furthermore, Google shall not impose anti-fragmentation obligations on OEMs and allow them to manufacture/develop Android forks based smart devices for themselves. Users shall be allowed to choose their default search engine for all search entry points during the initial device setup.

The judgment is a warning to all platforms and companies to respect India’s digital rights and not engage in anti-competitive or anti-consumer practices that violate Indian competition law. While Google is reviewing the order and evaluating its legal options, it must comply with the NCLAT’s directions within the given timeframe.