Explained: Google Ordered To Pay ?1337 Crore Fine, Granted Some Modifications For Relief

Lately, Google has found itself in troubled waters due to a number of legal and regulatory issues. The Competition Commission of India (CCI), the country's antitrust body, slapped two consecutive fines on the American tech giant last year for exploiting its monopoly and engaging in anti-competitive practices.

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The two fines that began Google's woes in India

The first fine, worth ?1,337 crore ($161 million) was imposed on Google in October, 2022 for "abusing its dominant position in multiple markets in the Android mobile device ecosystem."

his particular fine referred to "search entry points" that were seemingly controlled by Google services like its search app, widgets, and Chrome browser - putting manufacturers at a disadvantage, in addition to bundling of core Google services like YouTube.

CCI imposes monetary penalty of ? 1337.76 crore on Google for abusing dominant position in multiple markets in the Android Mobile device ecosystem.
Press Release: https://t.co/sXXA0RvK51#Antitrust #AntitrustOrder #antitrustlaw #Google #CCI pic.twitter.com/FE5Yh8PWr4

¡ª CCI (@CCI_India) October 20, 2022

Another fine that came a few days later required Google to pay up ?936 crore ($113 million), requiring the company to "not restrict app developers from using any third party billing/payment processing services." In essence, the CCI wants third-party billing and payment services to be available for use by app developers.

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New ruling brings relief and bad news for Google

But now, Google has been given some relief, and some bad news in terms of the the first fine worth ?1,337 crore.

On Wednesday, a two-member bench of the National Company Law Appellate Tribunal (NCLAT) directed Google to deposit ?1,337.76 crore in 30 days. The tech giant had approach the tribunal to challenge the fine, but will now end up paying it - after earlier being ordered to pay 10% of the amount.

Also read: Explained: Why India Imposed Consecutive Hefty Fines On Google And What's Next

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In addition, Google now has 30 days to implement the directives laid out by the CCI. The NCLAT bench, comprising Chairperson Justice Ashok Bhushan and Member Alok Shrivastava, also gave some relief to Google, modifying some aspects of the order that was passed on October 20, 2022.

Out of the 10 remedies that were imposed by the CCI, four were struck down by the NCLAT. The important ones that Google doesn't need to implement are as follows:

• -> Google will not need to allow third-party app stores within Play Store, disqualifying CCI's earlier order.
• -> Google will not need to allow users to remove pre-loaded apps like YouTube, Google Maps, and Gmail.
• -> Google can also continue imposing limits on "sideloading," i.e., the practice of downloading apps without an app store - something CCI wanted to be discontinued.

When the fine was imposed in October, it was seen as more sweeping that what even European Union's landmark $4.3 billion fine for unlawful restrictions on Android manufacturers.

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At that time, referring to India's antitrust order, Google had claimed that "no other jurisdiction has ever asked for such far-reaching changes." It's important to note that India is a top market for Google and about 97% of all 600 million smartphones in India run on Android.

Also read: Indian Regulator Says Google's Data Hegemony Is Hurting Fair Competition In Tech

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During the follow-up hearings, Google had claimed that there was a violation of natural justice by the CCI in the investigation, a claim rejected by the NCLAT bench.

For now, it's unclear if Google will challenge other CCI remedies that it's currently expected to implement within 30 days. What do you think about Google's antitrust woes in India? Let us know in the comments below. For more in the world of technology and science, keep reading Indiatimes.com.