
Google deems the CCI's fine for mobile app distribution "Unfair"
Google argued before the NCLAT on Friday that the competition watchdog CCI imposed an "unfair imposition" on its mobile app distribution agreement with device manufacturers since it does not ban the installation of other applications, including those of competitors.
A two-member NCLAT bench led by Chief Justice Ashok Bhushan said on Friday that it would begin daily hearings of the case on February 23, the next scheduled hearing date.
Google argued before the National Company Law Appellate Tribunal (NCLAT) that the pre-installation of its applications on smartphones under the Mobile Application Distribution Agreement (MADA) is not "unfair" since there is no limit on downloading other apps and there is sufficient space for them.
Google filed an appeal against the Rs 1,337 crore penalty issued by the fair trade regulator CCI for abusing its dominant position in respect to Android mobile devices. The appellate panel was hearing the appeal.
Under MADA, OEMs (original equipment manufacturers) must have Google Mobile Suite (GMS) in order to install Google's Android operating system. This cannot be removed.
Senior Counsel Arun Kathpalia, defending the global IT giant, said that its pre-installed applications do not constitute dominance.
There is no restriction on the pre-installation of other applications, and Android users are free to download WhatsApp, Instagram, and Twitter via the Play Store. 26 billion app downloads were registered in 2021.
In addition, OEMs are pleased with GMS since, according to them, these applications make their products more marketable. Kathpalia added.
"Where exactly do the OEM and the customer suffer harm?" he said, saying that the CCI's finding is "unfair." "Where is the harm to the OEM and users?"
Kathpalia has said that there would be no royalties collected and that it will maintain a healthy environment. He said that, unlike Apple, Google does not use a closed operating system.
"The Android environment is quite competitive," he noted.
Google was fined Rs 1,337.76 crore on October 20 for anti-competitive actions involving Android mobile devices. In its October decision, CCI also ordered the internet giant to discontinue various unfair commercial practices.
In response to a directive from the Supreme Court, the NCLAT began hearing the Android case on February 15. The NCLAT is an appellate court with jurisdiction over rulings issued by the CCI. The supreme court ordered NCLAT to decide on the appeal by March 31.
Previously, on January 4, a different panel of the NCLAT issued a notice on Google's petition, ordering the company to pay 10 percent of the Rs. 1,337 crore fine levied by the CCI. The court refused to postpone the CCI ruling and scheduled a final hearing for April 3, 2023.
Google contested this before the Supreme Court, which rejected to suspend the CCI judgment and ordered the NCLAT to provide a decision by March 31.