Google Gets Demand Notices From CCI For Failing To Pay INR 2,274 Cr Penalties

The Competition Commission of India (CCI) has issued demand notices to Google for failing to pay the fines that were imposed on the company for its alleged anti-competitive practices within the prescribed time frame. 

Google has appealed to the National Company Law Appellate Tribunal (NCLAT) against the CCI’s two orders from October, which have yet to be heard by the tribunal. 

In response to the CCI’s decision, a Google spokesperson had, at the time, said that it presents a ‘major setback’ for Indian users and businesses who rely on the security features of Android and could potentially raise the cost of mobile devices.

The tech giant has also appealed the CCI’s decision on its Android operating system for smartphones, stating that the ruling poses security risks with the sideloading of apps and the potential for forked versions of Android. 

Reportedly, the demand notices are standard procedure and Google had 30 days to make the payment. However, the fines will not be due until the court rules on the stay application for the appeals. 

Under competition law, entities are required to pay the fines within 30 days of receiving the demand notice, unless there is a stay on the ruling. 

Decoding The Penalties Imposed By CCI On Google  

In late November 2022, Google was hit with two penalties totalling INR 2,274.2 Cr ($307 Mn) by the CCI as the tech giant faces increased scrutiny in the country. The penalties were issued in two separate cases. 

In the first case, the CCI concluded that Google had taken deliberate measures to consolidate its dominant position and suppress competition in five markets: licensable operating systems for smart mobile devices in India, app stores for Android, general web search services, non-OS-specific mobile web browsers, and online video hosting platforms. 

The investigation found that Google’s dominance and conduct resulted in entry barriers for other app stores. The CCI imposed a penalty worth 10% of Google’s average revenue in India over the past three years, or INR 1,337.76 Cr.

In the second case, Google was investigated for abuse of dominance within its Play Store policies. The CCI imposed a penalty worth 7% of Google’s average revenue in India over the past three years, or INR 936.44 Cr.

Google is also dealing with a third investigation by CCI over its AndroidTV operating system and creating barriers for firms who want to use (or develop) in-house operating systems for their smart TVs. It is also facing allegations of alleged abuse of its dominant position in the news aggregation space through Google News.