CCI order challenged by Google over anticompetitive practices

Table of Contents☰

Why in the News?

Google, was slapped with a fine of Rs 1,338 crore by CCI after being found guilty of anti-competitive behaviour in the Android mobile application ecosystem

What are Anticompetitive practices?

It refers to a wide range of business practices in which a firm or group of firms may engage to restrict inter-firm competition to maintain or increase their relative market position and profits without necessarily providing goods and services at a lower cost or of higher quality.

What is CCI?

The Competition Commission of India (CCI) was established in March 2009 by the Government of India under the Competition Act, 2002 for the administration, implementation, and enforcement of the Act.
Composition of the CCI
- The Commission consists of one Chairperson and six Memberswho shall be appointed by the Central Government.
- It is a quasi-judicial body which gives opinions to statutory authorities and also deals with other cases.
- The Chairperson and other Members shall be whole-time Members
Objectives:
It will eliminate practices having adverse effects on competition.
To Promote and sustain competition.
It helps in protecting the interests of consumers.
Ensuring freedom of trade in the markets of India.
It will Establish a robust competitive environment through:

What is NCLAT?

It was constituted under Section 410 of the Companies Act, 2013 for hearing appeals against the orders of the National Company Law Tribunal(s) (NCLT), with effect from 1st June 2016.
Functions:
- Hearing appeals against the orders passed by NCLT(s) under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC).
- To hear and dispose of appeals against any direction issued or decision made or order passed by the Competition Commission of India (CCI).
It also hears and disposes of appeals against the orders of the National Financial Reporting Authority.

Q1) What are the effects of anti-competitive practices?

The most obvious effect of such practices is seen in the form of price increases in markets involving output-restricting or price- fixing cartels and dominant firms abusing their market power. In such cases, consumers are the ones who suffer directly from restricted competition.

Source: Google moves NCLAT over CCI fine on ‘dominance