With the lapse of 60-day period for ₹1,336.7 crore penalty in the Android mobile ecosystem case against Google, the Competition Commission of India (CCI) is now understood to have initiated recovery proceedings as per its practice after the expiry of stipulated time.
Not only this, key personnel of Google in India now face potential prosecution for ‘non-compliance’ of directives of competition watchdog, sources said.
On October 20, the fair trade regulator had levied a fine of ₹1,336.7 crore on Google in the Android mobile ecosystem matter besides issuing series of non-monetary sanctions for indulging in anti-competitive conduct. Separately on October 25, CCI had pulled up Google for abusing its dominant position as regards its Google Play policy and imposed a penalty of ₹937 crore on the the global tech giant.
The Competition law provides sixty-day window for appeal before NCLAT against any penalty order of the Competition watchdog.
Despite expiry of sixty days allowed for appeal in the Android mobile ecosystem case, Google has neither deposited the penalty as directed by CCI nor has it been able to obtain any stay on the orders issued by CCI, and thereby rendered itself liable to be prosecuted for non-compliance of the directives of competition watchdog, sources said.
According to competition law experts, by not despositing penalty within the time outlined by CCI, Google is facing further fines in terms of Section 42(2) of the Competition Act, 2002 besides exposing its top management to prosecution under Section 42(3) of the Competition Act.
As per the CCI Recovery of Penalty Regulations, the Recovery Officer can also order freezing bank accounts of Google besides attaching its properties for recovery of penalty, sources added.
Alphabet Inc, the listed entity of Google companies, may also need to inform the US Securities Exchange Commission (SEC) for non-compliance of regulatoty directions alongwith coercive steps initiated by CCI for recovery, said securities market observers.
LEGAL PROCESS IN A NUTSHELL
There are two things that happen simultaneously when the stipulated period expires. CCI initiates recovery proceedings and issues demand notice on 61st day if there is no stay on the matter. Once demand notice is issued, the parties are given thirty days time and within this period if the payment is not made, then recovery notice is issued. Thereafter attachment of bank account and their property takes place. Simultaneously, to give the party concerned punishment for not complying with the CCI order, the Competition watchdog can also launch prosecution with the Chief Metropolitan Magistrate, competition law experts explained.
In the Google’s Android case, the CCI has not yet approached the Metropolitan Magistrate for launching any prosecution. But such an action cannot be ruled out and therefore the key personnel of Google in India now face potential prosecution, sources noted.
WHAT GOOGLE SAID
A Google spokesperson had recently said : “We have decided to appeal the CCI’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 raises the cost of mobile devices”.
Android has greatly benefitted Indian users, developers, and OEMs (original equipment manufacturers), and powered India’s digital transformation, the spokesperson said. “We look forward to making our case and remain committed to our users and partners.”
