NCLAT Upholds CCI Ruling Against Google, Slashes Penalty to ₹216 Crore

The National Company Law Appellate Tribunal (NCLAT), a quasi-judicial body in India, upheld the ruling by Competition Commission of India’s (CCI) against Google, thus reiterating that the technology giant misused its dominant market position concerning Play Store policies, reported PTI. However, the tribunal significantly reduced the penalty from Rs 936.44 crore to Rs 216.69 crore.

"The penalty imposed on Google has been adjusted as per the computation outlined in paragraph 105 of this order. Accordingly, the penalty for the relevant turnover of the last three preceding years, originally set at ₹936.44 crore, has been revised to ₹216.69 crore (approximately $29.89 million)," s NCLAT order.

A two-member bench, comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra, ruled that Google had indeed engaged in anti-competitive practices in certain aspects, claimed PTI. However, they noted that in some sections, violations were not fully substantiated, though a penalty was still applicable where “infractions” were proven.

Since Google has already deposited 10 percent of the penalty as part of its appeal, the tribunal directed the company to pay the remaining amount within 30 days.

The case dates back to October 25, 2022, when the CCI imposed a Rs 936.44 crore fine on Google for violating competition laws through its Play Store policies. In response, Alphabet Inc. and Google challenged the decision before the NCLAT, which reviews appeals against CCI rulings.

In addition to the financial penalty, the CCI had also ordered Google to put an end to its unfair business practices and implement “corrective measures” within a specified timeframe to address anti-competitive concerns.