In a significant development for India’s digital economy and competition landscape, the National Company Law Appellate Tribunal (NCLAT) on Friday upheld key elements of the Competition Commission of India’s (CCI’s) findings against Google, affirming that the tech giant misused its dominant position through its Google Play Store billing policies. However, the tribunal offered relief by reducing the original ₹936.44 crore penalty to ₹216 crore.
The case revolved around Google’s previous mandate requiring app developers to exclusively use its in-house Google Play Billing System (GPBS) for in-app purchases and transactions on the Play Store. The practice attracted criticism from Indian developers and regulators alike, triggering CCI’s investigation in 2020 after several complaints from app developers, particularly over the 30% commission Google charged.
Mandates for Google: No More Exclusivity or Discrimination
As part of its ruling, the NCLAT directed Google to revise its business practices. The company must now allow app developers to use third-party billing services without any restrictions and refrain from imposing anti-steering provisions that prevent developers from communicating with users to promote alternate payment options.
Importantly, the tribunal also instructed Google not to discriminate against third-party apps using the Unified Payments Interface (UPI) in India in favour of its own UPI-based app, Google Pay.
This ruling aligns with ongoing regulatory scrutiny across jurisdictions. Google has faced similar challenges in South Korea and the European Union, where regulators have targeted its app store policies and billing systems for limiting competition.
Partial Reprieve: Some CCI Directives Set Aside
While affirming that Google engaged in anti-competitive practices, the NCLAT struck down several of the more far-reaching behavioural remedies initially imposed by the CCI. These included lifting restrictions on third-party app stores within the Play Store, allowing users to uninstall preloaded Google apps, and permitting the downloading of apps from outside official stores.
The tribunal’s decision suggests a balancing act—correcting abusive practices while acknowledging operational concerns.
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Google’s Legal Journey: A Mixed Outcome
Google’s parent company, Alphabet Inc., had earlier approached the NCLAT to stay the CCI’s October 2022 order. Although it received no immediate relief in January 2023, it escalated the matter to the Supreme Court before eventually withdrawing its plea. The present verdict from the appellate body marks the culmination of that litigation.
Legal experts note that the reduction in financial penalty provides immediate relief to Google, but the upholding of core findings related to market abuse requires the company to significantly alter its billing policies in India.
For Indian app developers and digital startups, this decision may improve access to fairer payment terms and reduce dependency on platform-controlled billing systems, encouraging innovation and competition in India’s rapidly growing digital economy.
