NCLAT: CCI Says No to Google’s Walled Garden

NCLAT: CCI Says No to Google’s Walled Garden

The Additional Solicitor General (ASG) N Venkataraman concluded the Competition Commission of India's (CCI) arguments before the National Company Law Appellate Tribunal (NCLAT) in a case against Google saying the Alphabet-owned company had created a ‘digital data hegemony’ using its “money-spinning search engine” as the ‘castle’ and with its other apps playing the defensive role of a ‘moat.’

The matter is being heard by the division member bench of Justice Ashok Bhushan (Chairperson) and Dr. Alok Srivastava (Technical Member).

After addressing the issues relating to 10 remedies imposed by the Competition Commission of India (CCI), the ASG submitted that Google should comply with them as already directed by the Supreme Court.

Post the 19 January landmark ruling of the Supreme Court, the NCLAT is now hearing the Google’s appeal to CCI’s ruling in the Android case, where a penalty of Rs. 1,337 crore was imposed on the tech giant, besides the competition watchdog issuing 10 non-monetary directions.

The ASG in his concluding remarks argued that the result of this ‘castle and moat’ strategy is Data Hegemony which in market economic parlance means big market player tends to get bigger and bigger, while a small entrant struggles to attain a critical mass of users and user data.

In its statement, ASG said that in today's world, data is becoming the new oil and digital technology is transforming markets at an unprecedented scale and pace. Through digital mediation, business models and market access are rapidly transforming and being reshaped.

This leads to data capture and data deployment which in turn gets exploited and monetizes in the form of advertisement revenues.

“When choice is the guiding principle of competition law, Google’s Hegemony reduces both choice and competition,” he added.

According to ASG, when it comes to private entities, engaging in digital business where there is a constant unstoppable flow of data and traffic the same gets resourcefully controlled to the sole benefit of these entities and competition law is one important pillar in democratization of data and in attaining the objective of greatest good for the greatest number.

The ASG was of the view that implementation of the remedies made by the CCI would go a long way towards achieving the National mission of fair and competitive digital marketplace – a market with greater freedom for all players which would be in total sync with principles of free competition rather than the ‘walled garden’ approach of Google.

The Google had already made its substantive submissions and the ASG with concluding its final arguments for CCI, indicates that the NCLAT may reserve its final order on the matter.