NCLAT Reduces Google’s Penalty to Rs 260 Crore, Partially Upholds CCI Ruling on Play Store Practices

On March 28, the National Company Law Appellate Tribunal (NCLAT) upheld a key portion of the Competition Commission of India’s (CCI) findings against Google, concerning its Play Store billing policies, while significantly reducing the monetary penalty from Rs 936.44 crore to Rs 260 crore.

Background of the Case

In October 2022, the CCI ruled that Google misused its dominant market position by forcing app developers to use its Google Play Billing System (GPBS) for paid apps and in-app purchases. The commission called this an unfair trade practice and imposed restrictions along with the financial penalty.

The ruling barred Google from mandating the use of its billing system and directed the tech giant to modify its app payment policies.

Google’s Appeal and NCLAT’s Response

In January 2023, Google appealed the CCI's decision. The NCLAT has now partially upheld the CCI’s findings on abuse of dominance but has provided relief on the financial front by reducing the fine to Rs 260 crore.

Key Implications of the Verdict

Google cannot enforce its billing system as a condition for Play Store access.

App developers are free to use third-party billing services.

Google’s dominant position in the app marketplace must not result in anti-competitive practices.

This verdict reinforces India’s regulatory stance on promoting fair digital market practices while acknowledging Google's partial compliance in reassessing the penalty.

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