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Google moves SC against NCLAT's order on Play Store
NCLAT had upheld key aspects of CCI's order

Google moves SC against NCLAT's order on Play Store

Jul 24, 2025
01:36 pm

What's the story

Google has filed an appeal in India's Supreme Court challenging a March 2025 order from the National Company Law Appellate Tribunal (NCLAT), which partially upheld a Competition Commission of India (CCI) ruling. The NCLAT confirmed Google's abuse of dominance in the Android and Play Store ecosystem—particularly mandating use of its Play Billing System. However, it reduced the initial ₹936 crore fine imposed by CCI to ₹217 crore.

Antitrust measures

CCI's original order and fine

In October 2022, the CCI had imposed a ₹936.44 crore fine on Google for abusing its dominant position with respect to Play Store policies. The antitrust watchdog also issued a cease-and-desist order and a set of measures to change the company's app payment policies. This action came two years after the CCI ordered an investigation into Google's mandatory use of its Play Store payment system for paid apps and in-app purchases in November 2020.

Tribunal verdict

What NCLAT said in its March ruling

In its March 2025 ruling, the NCLAT upheld CCI's finding that Google imposed unfair and discriminatory conditions on app developers. This was done by mandating the use of Google Play Billing System (GPBS) for paid app sales and in-app purchases. The tribunal also agreed with CCI's conclusion that Google leveraged its dominance over Android and Play Store ecosystems to favor its own payment app, Google Pay, over competing UPI-based digital payment apps.

Regulatory orders

Tribunal's directives to Google

The NCLAT also upheld CCI's directives allowing app developers to use any third-party billing or payment processing service for app sales and in-app purchases. It barred Google from restricting app developers' communication with their users or directing them outside the Google Play ecosystem to promote their apps and offerings. The tribunal also prohibited discrimination against other apps facilitating UPI payments in India.

Market dynamics

What NCLAT overturned

The NCLAT overturned other aspects, saying Google didn't deny market access to rival payment processors and aggregators. This was because GPBS accounts for less than 1% of the larger digital payment ecosystem in India. The tribunal also rejected CCI's claim that Google engaged in discriminatory pricing by allowing its own apps like YouTube to escape service fees while charging other apps 15-30%. It said there was no 'sale of goods or services' involved as YouTube is Google's own app.