Play Store Controversy: Google Withdraws Appeal Before SC Against NCLAT Order

In the ongoing Google versus Competition Commision of India (CCI) tussle, tech giant Google has withdrawn its appeal before the Supreme Court against an National Company Law Appellate Tribunal (NCLAT) decision.

Earlier in January, NCLAT declined to grant interim relief to tech giant Google on its plea seeking a stay on the CCI’s INR 936.44 Cr penalty on the company for abusing its dominant market position with respect to Play Store policies.

While Google’s appeal was scheduled to be heard by the apex court on April 17, the tech major has withdrawn the appeal, BusinessLine reported.

Of its INR 936 Cr penalty, Google has already deposited 10% to NCLAT.

The matter had been listed for final hearing before NCLAT on April 17.

Google’s Contentious Play Store Policy

CCI imposed a penalty of INR 936.44 Cr on Google in October in an antitrust probe for abusing its dominant position with respect to its Play Store policies.

The fine was imposed on Google for its in-app payments policy on the app marketplace, Play Store. The competition watchdog directed the tech giant to “not restrict app developers from using any third party billing/payment processing services.”

Subsequently, the tech giant moved the NCLAT seeking a stay on the CCI’s INR 936.44 Cr penalty.

Following the CCI order, Google also said it would start allowing all Android app developers to opt for a third-party billing system for Google Play Store purchases in India starting April 26.

While developers are currently charged a 15-30% commission for using Google’s platform and payment, app developers who opt to use an alternate payment method or third-party payment services, for subscriptions and paid apps, will get a 4% discount commission under the new directive.

However, policy think tank Alliance of Digital India Foundation (ADIF) requested CCI to look into the ‘abusive dominance practices’ of Google on an urgent basis, adding that the 11-26% service fee for in-app purchases will be a death knell for the Indian startup ecosystem.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.