In a U-turn, Google has withdrawn its appeal before the Supreme Court against an NCLAT decision of January this year denying interim relief to the big tech in the form of a stay on the ₹936 crore penalty imposed by the CCI in its October 25 ruling in the Google Play Store policy case.
This Google appeal was to be heard by the Apex Court on April 17, but now the big tech has withdrawn the appeal, sources familiar with the development said.
Google has already deposited with NCLAT as much as 10 per cent of the penalty amount of ₹936 crore. The final hearing before NCLAT in this case is slated for next week.
Anti-competitive practices
Competition Commission of India (CCI) had in January this year in a rare move filed a caveat before the Supreme Court to avert any ex-parte interim stay in the Play Store policies case.
It is the second case the competition watchdog has dealt with, the first being the Android matter, in which it also issued non-monetary directions for the tech giant’s anti-competitive practices.
The CCI ruling from October 25 last year prompted the tech giant to introduce a user choice billing (UCB) policy that would allow app developers to use a third-party billing system starting April 26 this year.
However, domestic start-ups oppose this as Google will still charge hefty commissions/service fees of 15-26 per cent, even after UCB, to app developers who use third-party billing systems. This makes it unviable for several developers to distribute their apps through Play Store.
Domestic digital start-ups have recently moved Delhi High Court seeking direction to CCI to invoke the doctrine of necessity to proceed against Google on the complaint filed by the Alliance of Digital India Foundation (ADIF), a policy think tank of digital start-ups.
Background
The case pertains to Google Play Store policies that require app developers to exclusively and mandatory use Google Play’s Billing System (GPBS). Not only does Google Play Store provide payment options for apps (as well as other digital products such as audio, video, and games), but also for in-app purchases such as purchases made by app users after they have downloaded/purchased the app.
Further, app developers cannot, within an app, provide users with a direct link to a webpage containing an alternative payment method or use language that encourages a user to purchase the digital item outside of the app (anti-steering provisions).
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In its ruling, CCI found Google to be in violation of competition law as mandatory usage of GPBS for paid apps and in-app purchases constitutes an imposition of an unfair condition on app developers.
CCI directed Google to allow, and not restrict app developers from using any third-party billing/ payment processing services, either for in-app purchases or for purchasing apps.
Google was further directed not to discriminate or otherwise take any adverse measures against such apps using third-party billing/ payment processing services, in any manner.
CCI also found anti-steering provisions of Google’s policy to be anti-competitive. Google had also been directed not to restrict app developers from communicating with their users to promote their apps and offerings, in any manner.