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Home ยป 1,337 crore fine on Google: Supreme Court upholds NCLT order

1,337 crore fine on Google: Supreme Court upholds NCLT order

Google has not got relief from the Supreme Court in the matter of the penalty imposed by the Competition Commission of India (CCI). The CCI had imposed a fine of Rs 1,338 crore on Google for abusing its supremacy on the Google Play Store. Google had earlier appealed in the High Court, but Google did not get any relief from the High Court as well, due to which they have appealed in the Supreme Court.

Google first reached NCLT, then the Supreme Court. After not getting relief from the Supreme Court, Google said, ‘We are reviewing the decision. A bench headed by Chief Justice DY Chandrachud said the CCI report did not find any lapses, hence the penalty is correct. Court ordered Google to deposit 10% of the fine amount in a week.

CCI imposed a fine of Rs 1,338 crore for abusing its supremacy on the Google Play Store. The CCI cited two reasons for imposing the penalty: Google’s pressure to make Google Pay the default payment system for every app, and second, mandatory bundling of Google’s apps on Android.

Android has greatly benefited Indian users, developers and OEMs and has played a significant role in India’s digital transformation. But the monopoly of any company in one sector can prove to be harmful to the consumers. About 96% of the smartphones in India run on the Android operating system.

Google had put pressure on every app published on its Play Store to process every payment related to the app through Google’s payment platform Google Pay. This affects the rest of the platforms and the competition ends. Also, it was considered a means of suppressing the rest of the payment platforms wrongly and creating a monopoly in the market.

Android OS is the most widely used mobile OS in the world. Google had forced phone makers to include Google’s apps (Google Search, YouTube, Chrome, etc.) as default in every new phone. They are allowed to use Android only on this condition.

Two main things have to be done to impose a fine of 1338 crores on Google, due to which the company has its monopoly. In Europe also, a fine of Rs 66 thousand crore has been imposed on Google in the cases of unfair business.

Check also: ICICI loan fraud case: Bombay HC grants interim bail to Venugopal Dhoot

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