Google Challenges NCLAT’s Decision on Android Ecosystem Abuse

Google Challenges NCLAT’s Decision on Android Ecosystem Abuse

Introduction

Google has moved the Supreme Court challenging the March 2025 ruling of the National Company Law Appellate Tribunal (NCLAT), which partially upheld the Competition Commission of India’s (CCI) findings that Google abused its dominance in the Android ecosystem. Google’s petition also seeks a stay on the penalty and directions, arguing that the order violates its fundamental right to trade freely under Article 19(1)(g) of the Constitution.

Factual Background

The CCI launched an investigation into Google’s billing practices on the Play Store in November 2020. In October 2022, the CCI concluded that Google abused its dominant position by mandating the use of Google Play Billing System (GPBS) for app purchases.

Procedural Background

The NCLAT upheld several core findings of abuse, including that Google leveraged its dominance to promote Google Pay and imposed unfair conditions on developers through mandatory use of GPBS. However, the NCLAT set aside some conclusions and recalibrated the penalty to ₹216.69 crore from the original ₹936.44 crore. On May 1, the NCLAT reinstated two key CCI directives — user choice billing and allowing developers access to user data — which Google has also challenged.

Issues

The primary issues are whether Google abused its dominance in the Android ecosystem, whether the NCLAT’s ruling was correct, and whether the orders infringe Google’s constitutional right to conduct business.

Contentions of the Parties

Google’s Contentions:

• Google has challenged the NCLAT’s ruling, arguing that it did not abuse its dominance in the Android ecosystem and that the Play Store operates in a highly competitive market.
• Google claims the ruling will harm both developers and consumers by limiting choices.
• Google has also contested the NCLAT’s subsequent order dated May 1, which reinstated the two key user choice and data access directives.
• Google argues that the CCI’s penalty and directions violate its fundamental rights under Article 19(1)(g).

CCI’s Position:

• The CCI had concluded that Google abused its dominant position by mandating the use of GPBS for app purchases and imposing unfair conditions on developers.
• The CCI originally imposed a penalty of ₹936.44 crore, which was later recalibrated by the NCLAT to ₹216.69 crore.
• The CCI maintains that the directions protect fair competition in India’s digital ecosystem.

Reasoning & Analysis

The NCLAT held that Google leveraged its dominance in two relevant markets to promote Google Pay and imposed unfair conditions on developers. It upheld the CCI’s finding that Google’s conduct breached competition law by imposing unfair and discriminatory conditions. It also found that the CCI’s directions were not excessive or perverse.

Implications

This decision highlights the importance of competition law in regulating the conduct of dominant players in the digital economy. The outcome of the Supreme Court challenge will have significant implications for app developers, consumers, and digital marketplace practices in India.

Final Outcome

The Supreme Court will now consider Google’s appeal against both the substance of the NCLAT ruling and its procedural correctness. A decision on the stay request is awaited.