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The NCLAT upholds a Rs 1,338-crore fine against Google but provides partial relief on four grounds

On Wednesday, an appellate tribunal issued a verdict regarding Google’s alleged anti-competitive practices in the Android mobile device case. The tribunal upheld the Rs 1,338 crore fine imposed by the CCI for exploiting its dominant position in Android. However, it also struck down an anti-trust regulator order that had stated that Google would not restrict the removal of its pre-installed apps by users.

In its 189-page order, the NCLAT upheld six directions given by the CCI, including one that required Google to allow users during the initial device setup to choose their default search engine, and another that made it clear that OEMs cannot be forced to pre-install a bouquet of apps. The tribunal also granted partial relief by scrapping conditions like allowing hosting of third-party app stores on its Play Store.

The NCLAT also rejected Google’s plea over the computation of penalty, stating that ‘while calculating the ‘relevant turnover’, the CCI has correctly considered the sum total of revenue of various segments/heads in India arising out of the entire business of Google India’s operations of Android OS-based mobiles’.

Additionally, the tribunal rejected Google’s plea that the principle of natural justice was violated by CCI’s probe arm DG. The NCLAT stated that ‘investigation conducted by the Director General did not violate the principle of natural justice’.

In a statement, a Google spokesperson said, ‘We are reviewing the narrow concerns identified by the tribunal and will assess our next steps accordingly.’

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