The Supreme Court of India has upheld the order by the National Company Law Appellate Tribunal (NCLAT), in a major setback to Google LLC, in the Competition Commission of India (CCI) case about abusing the Android Platform and the dominant position in the market.
The Competition Commission of India (CCI) had imposed a penalty of Rs. 936.44 crores on Google for abusing its dominant position with respect to its Play Store policies, apart from issuing a cease-and-desist order. The Commission also directed Google to modify its conduct within a defined timeline.
In an appeal against the order of CCI, the NCLAT admitted the appeal but directed the appellants to deposit 10% of the penalty quantified by the order of the CCI within three weeks. However, no stay was granted in respect of the rest of the directions of the CCI which has resulted in the institution of this appeal before the Apex Court.
The appellant tech giant Google LLC pointed out that, NCLAT noted that “urgency has been shown in passing interim order”, the appeal has been directed to be listed on 3 April 2023 but there has been no expression of opinion, prima facie, on the merits of the order in appeal with a view to evaluating whether a case for interim stay was made out.
The Division Bench of Chief Justice Dr Dhananjaya Y Chandrachud and Supreme Court Justices Pamidighantam Sri Narasimha and J B Pardiwala, upon hearing the appeal, noted that the Apex Court cannot give an opinion on the merits of the case as it may affect pending proceedings before the NCLAT.
It was also clarified that the findings of the CCI cannot be considered invalid at this stage of the proceedings and there is no need for interference in appeal, in light of the factual matrix before it. The Supreme Court bench also reiterated the findings of the CCI and National Company Law Appellate Tribunal (NCLAT) in this instance.
The NCLAT was further directed to dispose of the matter within 31st March 2023.
However, considering that the appellant, Google LLC, was involved in the appellate and remedial processes before the NCLAT and the Supreme Court, the Apex Court granted an additional time of one week to deposit 10% of the quantified penalty.
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