Google submit before the NCLAT that there was “unfair imposition” by the competition watchdog CCI over its mobile app distribution agreement with device makers as it does not restrict from installing other apps, including that of rivals.
A two-member NCLAT bench head by Chairperson Justice Ashok Bhushan said it will start day-to-day hearing of the matter from 23rd February 2023, the next date of hearing.
Google while arguing its matter before the National Company Law Appellate Tribunal (NCLAT) said that the placement of its apps on devices through pre-installation under MADA (Mobile Application Distribution Agreement) is not “unfair” as there is no restriction from installing other apps and enough space is available for them.
The appellate tribunal was hearing a plea file by Google against Rs. 1,337 crore penalty impose by the fair trade regulator CCI for abusing its dominant position in relation to Android mobile devices.
Under MADA, OEMs (original equipment manufacturers) are require to have Google Mobile Suite (GMS) while installing the Android OS of Google.
This cannot be uninstall.
Senior Advocate Arun Kathpalia, representing the global IT major said its apps, which are merely pre-install “does not translate into dominance“.
There is no embargo on pre-installation on other apps and Android users can download apps like WhatsApp, Instagram, Twitter from its Play Store as per their choice. In 2021, 26 billion downloads of apps were record.
While contrary to this, OEMs are also happy with GMS as they said these apps make their products more sellable, Kathpalia said.
Arun Kathpalia Said :
“Where is the harm to the OEM and users in this?,” he said adding CCI’s order reflects “unfairness”.
It is not charging any royalty and is ensuring a healthy ecosystem, said Kathpalia.
Arun Kathpalia further said Google does not has a close system like Apple.
Arun Kathpalia Said :
“There is huge competition within the Android ecosystem,”.
On 20th October 2022, CCI impose a penalty of Rs. 1,337.76 crore on Google for anti-competitive practices in relation to Android mobile devices.
In the October ruling, CCI had also order the internet major to cease and desist from various unfair business practices.
NCLAT, an appellate authority over the orders pass by CCI, had started its hearing in the Android matter on 15th February 2023, following a direction of the Supreme Court.
The apex court had direct NCLAT to decide the appeal by 31st March 2023.
A separate bench of NCLAT had on 4th January 2023 issue notice over Google’s plea, directing it to pay 10% of the Rs. 1,337 crore penalty impose by the CCI.
It had decline to stay the CCI order and put the matter for a final hearing on 3rd April, 2023.
This was challenge by Google before the Supreme Court, which also decline to stay the CCI order but direct the NCLAT to decide on Google’s appeal by 31st March 2023.
