Google withdraws appeal in SC against NCLAT in anti-competition case

New Delhi, Apr 17 2023

NCLAT is likely to hear the matter this week and has transferred the case to chairperson's court

Google on Monday withdrew an appeal filed in the Supreme Court against the National Company Law Appellate Tribunal's (NCLAT) order that refused to grant it interim relief on the Competition Commission of India’s (CCI) directions relating on its alleged abuse of market dominance with Play Store policies.

The NCLAT is expected to hear the matter this week and has transferred the case to the chairperson's court, said a person familiar with the matter.

The CCI in October 2022 had ordered Google to allow app developers to use third-party billing or payment processing services for app purchases, as well as in-app purchases. The competition regulator also ordered Google to pay Rs 936 crore in penalties.

In its judgement, CCI marked Google's policies on the mandatory use of Google Play Billing System (GPBS) for paid apps and in-app purchases as an unfair condition on app developers. The CCI held that Google was following discriminatory practices by not using GPBS for its own application – YouTube.

Google started acting on the order in January after the Supreme Court refused to grant it interim relief. However, the tech giant also appealed against the directives in NCLAT. The tribunal had, on January 11, denied interim relief to Google in its appeal against the CCI’s penalty and also asked the tech giant to deposit 10 per cent of the penalty with the regulator.

Google has decided to pursue its appeal against CCI’s order in NCLAT. The Supreme Court bench led by Chief Justice DY Chandrachud was expected to hear the matter, but the case has been "dismissed as withdrawn". As per Google, the appeal has become infructuous.

The revised policies of Play Store will allow app developers to offer users’ choice billing systems to users along with Google Play’s billing system within India from April 26, 2023.

[The Business Standard]