Google plans to challenge CCI penalties worth Rs. 2,274 crore
The Competition Commission of India (CCI) recently imposed two penalties amounting to a total of Rs. 2,274 crore on Google. The tech giant is now planning to take the matters to the National Company Law Appellate Tribunal. The company thinks that the competition watchdog's orders are faulty. The appeal against the two orders will reportedly be based on three grounds.
Why does this story matter?
- Google is readying itself to challenge two CCI orders imposing fines on the company. There is nothing surprising about that. The questions were always about 'when' and 'how.'
- Now, we have an idea. The appeal will be crucial for the company, considering the importance of India as a market. An unfavorable decision from the tribunal will certainly affect its future aspirations.
Google believes that the nature of fines shows malafide intent
Google will challenge the CCI orders on three grounds. First of them is the nature of fines. According to the company, the fines imposed are penal in nature, which showcases a malafide intent. The company is of the opinion that if the CCI wanted to punish it for anti-competitive practices, it should have imposed token fines under the Competition Act.
Company thinks it can restrict usage of Android
Google has been fined for abusing its dominant position in the Android ecosystem. The company believes that CCI did not consider patent laws while determining its guilt. According to Google, since Android is a patented product, it can set boundaries on the usage of open source versions of the operating system. This is to ensure the overall security of the ecosystem.
Google thinks CCI should have taken into consideration users' views
The third and final ground upon which Google will mount its legal challenge against CCI orders is the lack of evidence from all stakeholders. The company believes that the orders are based on input from just app developers and manufacturers. It thinks that the anti-trust regulator should have taken the point of view of users as well.
Google was fined twice in two weeks
Within two weeks, the CCI fined Google twice. First, Rs. 1,337.76 crore for anti-competitive practices related to the Android ecosystem and second, Rs. 936.44 crore for abusing its monopoly concerning the Play Store. This competition watchdog also issued cease and desist orders against the company to stop unfair business practices. In one of them, it mentioned eight corrective measures for Play Store.