Google gets demand notices from CCI for non-payment of penalties

The Competition Commission is understood to have issued demand notices to Google for its failure to pay within the stipulated time the penalties imposed on the internet major for anti-competitive practices, according to sources.

Google has filed appeals before the National Company Law Appellate Tribunal (NCLAT) against the Competition Commission of India’s (CCI) two orders in October. The appeals are yet to be heard by the tribunal. In October, the watchdog slapped penalties totalling Rs 2,274.2 crore in two separate cases on Android mobile system and Play Store policies. The sources said CCI has issued demand notices to Google for non-payment of penalties imposed on the company in the two cases.

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While passing the orders, one on October 20 and another on October 25, the watchdog had directed the company to pay each of the penalties within 60 days of receiving the order concerned. With Google yet to pay the penalties, CCI has issued the demand notices. Under the competition law, an entity has to pay the fine within 30 days of receiving the demand notice, failing which the regulator can invoke its powers to recover the amount. According to Google, appeals have been filed in both cases.

As per the process, based on the outcome of the application seeking a stay on CCI orders, the penalties will become payable, it added. Under the competition law, entities have to pay the fine within the stipulated period if there is no stay on the ruling. Last week, a Google spokesperson said it has decided to appeal the regulator’s decision on Android “as we believe it presents a major setback for our Indian users and businesses who trust Android’s security features and potentially raising the cost of mobile devices”.

On October 20, CCI imposed a steep penalty of Rs 1,337.76 crore on Google for abusing its dominant position in multiple markets in relation to Android mobile devices and ordered the internet major to cease and desist from various unfair business practices. The regulator, which passed the order after ordering a detailed probe more than three years ago, had also directed Google to modify its conduct within a defined timeline.

Then, on October 25, the regulator slapped a penalty of Rs 936.44 crore on the internet major for abusing its dominant position with respect to its Play Store policies. Besides, it had also directed the company to cease and desist from unfair business practices as well as carry out various measures to address the anti-competitive issues within a defined timeline.