Google-CCI Penalty: Startup Community Files Caveat In NCLAT

On the backdrop of the Competition Commission of India’s (CCI) imposition of INR 936 Cr penalty to tech giant Google, the startup community has filed a caveat through the Alliance of Digital India Foundation (ADIF) in the National Company Law Appellate Tribunal (NCLAT). Google responded last week that it is reviewing CCI’s penalty clauses to decide its next steps.

The caveat has been filed to ensure that the startup community is a party to the case if the tech giant challenges the CCI verdict, The Economic Times reported. 

Last week, CCI imposed a penalty of INR 936.44 Cr to Google for abusing its dominant position with respect to its Play Store policies, apart from issuing a cease-and-desist order. Google can challenge the order within 60 days before a high court or NCLT.

“This case will set a precedent and we want to make sure that all the effort is not lost when the final verdict comes out. The case needs to be represented well and it also needs to get to a logical conclusion and that becomes a question for future cases,” a senior industry executive said as quoted in the report.

A caveat petition is a precautionary measure undertaken by an individual anticipating that another individual may file an application in a suit or proceeding instituted or about to be instituted against him/her in the court. 

It is pertinent to note that Google has pulled back the enforcement of the in-app billing policy in India following the CCI verdict. Earlier, it had set a deadline of October 31 for app developers in India to mandatorily start using the Google Play Billing Service (GPBS).

CCI found Google guilty of flouting multiple provisions of the Competition Act such as making Google’s in-house payment and billing system mandatory for paid apps and in-app purchases. It also noted that Google imposed unfair conditions on app developers.

After CCI imposed the penalty on Google in the antitrust probe, the tech giant said it is reviewing the decision to evaluate its next steps. 

“And, by keeping costs low, our model has powered India’s digital transformation and expanded access for hundreds of millions of Indians. We remain committed to our users and developers and are reviewing the decision to evaluate the next steps,” the company said.