Why in news?

Recently, the Supreme Court admitted Alphabet Inc.’s appeal against an NCLAT judgment that partly upheld Competition Commission of India’s (CCI) findings of Google abusing its dominance in the Android ecosystem through anti-competitive practices.

The Court also admitted related petitions from the CCI and Alliance Digital India Foundation (ADIF), a coalition of Indian startups opposing Big Tech dominance.

What’s in Today’s Article?

• CCI’s Case Against Google
• Google’s Defence Against CCI’s Findings
• High Stakes in the Android Antitrust Battle
• Supreme Court Verdict to Shape India’s Digital Market Future

CCI’s Case Against Google

• The CCI began investigating Google in 2020.
• This was after getting complaints from app developers and industry groups alleging that the company was exploiting its dominance in the Android ecosystem to promote its own services and curb fair competition.
• By 2022, the CCI concluded that Google engaged in several anti-competitive actions:
  • Mandatory Google Play Billing System (GPBS): Developers selling in-app content on the Play Store were compelled to use GPBS, paying commissions of 15–30%, instead of integrating their own billing systems.
  • Preferential Treatment to YouTube: Google exempted YouTube from these billing requirements, granting it a cost advantage over competitors.
  • Bundling of Google Apps: Smartphone makers were required to pre-install Google apps (Search, Chrome, YouTube, etc.) to access the Play Store, limiting consumer choice and stifling innovation from alternative service providers.
• Penalties and Directives
  • The CCI fined Google ₹936.44 crore and directed it to:
    • Decouple GPBS from Play Store access.
    • Ensure transparency in billing data.
    • Refrain from using billing data to unfairly advantage its own services.

Google’s Defence Against CCI’s Findings

• Google dismissed the CCI’s conclusions, stating its practices aimed to improve user experience, ensure security, and sustain the Android ecosystem.
• It emphasised that Android is open-source and free for manufacturers, and OEMs can license the core platform without installing Google’s proprietary apps if they forgo Play Store access.
• Pre-installing Google apps, it argued, was for efficiency and convenience, without restricting users from downloading alternatives.
• Regarding billing, Google claimed the Google Play Billing System (GPBS) ensured safe transactions, reduced fraud, and offered developers global infrastructure, distribution reach, and regular security updates.
• Commission fees, it said, were industry-standard. The exemption of certain in-house services from GPBS was presented as a reflection of different business models, not anti-competitive behaviour.
• Google also highlighted that leading Indian apps like PhonePe, Paytm, and Hotstar had thrived on Android, indicating a competitive market.

NCLAT’s Partial Ruling in Google’s Appeal

• In March, the NCLAT partly upheld the CCI’s 2022 order, agreeing that Google’s mandatory billing policy and bundling of apps constituted abuse of dominance.
• However, it reduced the penalty from ₹936.44 crore to ₹216.69 crore, calling the original fine disproportionate.
• The tribunal also struck down some behavioural remedies for being over-broad or lacking sufficient evidence.
• Following a review in May 2025, the NCLAT reinstated two key directions — requiring Google to be transparent in its billing data policies and prohibiting it from using such data to advantage its own services.
• This partial outcome left all sides dissatisfied: Google sought a full reversal, the CCI wanted the original penalties restored, and ADIF felt the tribunal was too lenient.

High Stakes in the Android Antitrust Battle

• The Supreme Court’s ruling in the Google vs CCI case will shape the balance between platform control, market competition, and consumer choice in India’s digital ecosystem.
• Impact on Consumers
  • A CCI win could increase app choice and lower prices by allowing developers to bypass GPBS for cheaper payment options.
  • It may also enhance privacy and fairness by limiting Google’s use of billing data.
  • However, reduced control could cause Android fragmentation, leading to inconsistent user experiences.
• Impact on Smartphone Makers
  • An outcome favouring the CCI could give OEMs greater flexibility to pre-install rival apps and explore alternative Android versions without losing Play Store access — a potential boost for smaller Indian brands.
• Impact on Startups and Developers
  • Indian startups could gain a level playing field, with more payment options and less bias in app promotion.
  • ADIF views this as a chance to curb Big Tech dominance and improve local companies’ bargaining power.
• Impact on Google
  • Beyond India, a loss could inspire similar regulatory actions globally, forcing Google to unbundle services or open its billing system, altering its core Android business model.

Supreme Court Verdict to Shape India’s Digital Market Future

• The Supreme Court’s hearings will assess whether Google’s practices constitute “abuse of dominance” under Indian competition law and weigh the economic dynamics of platform markets.
• The ruling will influence how over 95% of Indian smartphone users access apps, make payments, and interact with mobile services.
• A verdict upholding the CCI’s original directions could position India as a global leader in strong digital market regulation outside the EU, while a decision in Google’s favour would maintain the current market structure.