Google's App Store Policy Challenge: NCLAT Upholds CCI Verdict but Reduces Penalty

The NCLAT upheld the CCI's ruling that Google's app store billing policy was anti-competitive, although it reduced the penalty imposed from Rs 936.44 crore to Rs 216.69 crore. The tribunal found Google had abused its position but did not find infringement regarding the service fee charges for apps.

In a significant development for tech giant Google, the National Company Law Appellate Tribunal (NCLAT) has confirmed the Competition Commission of India's (CCI) verdict that the company's app store billing practices have been unfair to developers. However, the tribunal reduced the penalty from Rs 936.44 crore to Rs 216.69 crore.

The NCLAT's decision saw a two-member bench stating that while Google had indeed abused its dominant position by imposing unfair conditions, it found no violation regarding the service fee of 15 to 30 percent charged to app developers. The ruling also mandates that Google permits app developers to choose their billing services and prohibits anti-steering provisions.

Despite Google's arguments, the tribunal found that imposing Google Play Billing System (GPBS) was discriminatory. Apart from setting aside some CCI directions on data transparency, the findings highlight Google's need to comply with fair-trade practices.

(With inputs from agencies.)