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NCLAT judgement on Google welcomed by start-ups

Startup industry body ADIF said that the NLCAT order upholding a penalty on Google validates the global technology giant’s abuse of dominant position by bundling Android OS and Play Store with its apps is real and regressive for Indian startup ecosystem. The NCLAT (National Company Law Appellate Tribunal) has upheld the orders of the fair trade regulator CCI imposing a penalty of Rs 1,337.76 crore on tech major Google in the Android mobile devices case, with some modifications.

“ADIF welcomes NCLAT order, as it cements the fact that the abusive dominance by Google due to its bundling of Android OS and Play Store with its own apps is real and regressive for Indian startup ecosystem,” Alliance of Digital India Foundation (ADIF) said in a statement.

The startup body said that the mandatory pre-installation of Gmail, Chrome, Search, Maps and Youtube creates entry barriers, and price asymmetry and restricts innovation in these segments.

“Also, the agreements by Google with OEMs are anti-competitive in nature and limit technical and scientific developments in the market,” ADIF said.

The startup body said that “Google lagaan”, by mandatory imposition of up to 26 percent commission to app developers from April 26, 2023 is another major impediment in growth of Indian startups, as it would take around a third of revenue, thus impacting their sustainability. Business Standard

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