COMPETITION COMMISSION OF INDIA - ECONOMY
News: Supreme
Court rejects Google’s plea against NCLAT order in Android case
What's in the news?
● The
Supreme Court affirmed a National Company Law Appellate Tribunal (NCLAT) order
refusing interim relief to Google against a Competition Commission of India
(CCI) directive to pay a penalty of ₹1,337.76 crore for "abuse of
dominance" in the Android ecosystem.
Key takeaways:
● The
Competition Commission on October 20 imposed a penalty of ₹1,337.76 crore on Google for abusing its dominant position
in multiple markets in the Android mobile device ecosystem.
● Section 4
of the Competition Act pertains to abuse of dominant position.
○ Google
has perpetuated its dominant position in the online search market resulting in
denial of market access for competing search apps. Also, it has leveraged its
dominant position in the app store market for Android OS to protect its
position in online general search which violates the competition law.
● Further,
CCI noted that the internet major has leveraged its dominant position in the
app store market for Android OS to enter as well as protect its position in
non-OS specific web browser market through Google Chrome App.
Competition Commission of India:
● Competition
Commission of India is a statutory body
responsible for enforcing the objectives of the Competition Act, 2002.
● The
Competition Act, 2002 prohibits anti-competitive agreements, abuse of dominant
position by enterprises and regulates combinations (acquisition, acquiring of
control and Merger and acquisition), which causes or likely to cause an
appreciable adverse effect on competition within India.
Composition:
● It
is a quasi-judicial body which has
one chairperson and six other members.
● They
will all be appointed by the Central
Government.
● The
Chairperson and members shall be a person of ability, integrity and standing
and who, has been, or is qualified to be a judge of a High Court, or, has
special knowledge of, and professional experience of not less than fifteen
years in international trade, economics, business, commerce, law, finance,
accountancy, management, industry, public affairs, administration or in any
other matter.
Duty of the Commission:
● To
eliminate practices having adverse effects on competition.
● Promote
and sustain competition.
● Protect
the interests of consumers.
● Ensure
freedom of trade in the markets of India.
● The
Commission is also required to give opinion on competition issues on a
reference received from a statutory authority established under any law and to
undertake competition advocacy, create public awareness and impart training on
competition issues.
Key takeaways:
● The
appeals from CCI goes to National
Company Law Appellate Tribunal (NCLAT) constituted under the Companies Act,
2013.