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CCI Penalty

CCI

CCI Impose Another Rs 936 Cr Penalty On Google For Unfair Business Policies In A Week

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CCI has directed the company to cease and desist from unfair business practices in the order. Also, while examining the allegations, the CCI landed on exclusion of rival UPI apps as effective payment options on Play Store as well. On 20 October, the imposing a penalty of Rs 1,337.76 crore on Google for abusing its dominant position in multiple markets in relation to Android mobile devices

The Competition Commission of India (CCI) imposed a penalty of Rs 936.44 crore on Google for abusing its dominant position with respect to Play Store policies, on 25 October. CCI has directed the company to cease and desist from unfair business practices in the order.

“Based on its assessment, the CCI found Google to be dominant in the markets for licensable OS for smart mobile devices & market for app stores for Android smart mobile OS, in India,” said the release.

The CCI directed Google to modify its conduct within a defined timeline.

Also, while examining the allegations, the CCI landed on exclusion of rival UPI apps as effective payment options on Play Store as well.

“It was found that Google Pay has been integrated with intent flow methodology whereas other UPI apps can be used through collect flow methodology,” the release added.

Google has received the second major ruling from CCI within a week. On 20 October, the imposing a penalty of Rs 1,337.76 crore on Google for abusing its dominant position in multiple markets in relation to Android mobile devices, the watchdog issued an order against the internet major to cease and desist from various other unfair business practices.

CCI

CCI Fines MMT, Goibibo, OYO Rs 392 Cr For Unfair Biz Practices

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Make My Trip and Goibibo will pay a total fine of Rs 223.48 crore, whereas OYO will pay Rs 168.88 crore. MMT-Go and OYO had entered into confidential commercial agreements allowing MMT-Go to give preferential treatment to OYO on its platform, which lead to a denial of market access to other competitors in the market

The Competition Commission of India (CCI) imposed penalties more than of worth Rs 392 crore on the Online travel firms Make My Trip-Goibibo (MMT-Go) and hospitality services provider OYO, on 19 October.

The penalty order was 131-page long briefing the “unfair business practices”.  According to the order, Make My Trip and Goibibo will pay a total fine of Rs 223.48 crore, whereas OYO will pay Rs 168.88 crore. 

Briefing the allegations the order said, “MMT-Go has imposed price parity in its agreement/contract with hotel partners whereby the hotel partners are not allowed to sell their rooms at any other OTA or on its own online portal at a price below which it is being offered on MMT-Go’s platform.”

Further it also stated that MMT-Go and OYO had entered into confidential commercial agreements allowing MMT-Go to give preferential treatment to OYO on its platform, which lead to a denial of market access to other competitors in the market. This came out of a detailed investigation on the matter which was carried on since October 2019. 

Apart from the penalty, MMT-Go is also directed ” suitably modify its agreements with hotels/chain hotels, to remove/abandon the price and room availability parity obligations imposed by it on its hotel/chain hotel partners with respect to other OTAs (Online Travel Agencies).

The regulator has also ordered to make changes in its agreement with hotels/chain hotels, to remove/abandon the exclusivity conditions. “MMT-Go is directed to provide access to its platform on a fair, transparent and nondiscriminatory basis to the hotels/chain hotels, by formulating the platforms’ listing terms and conditions in an objective manner,” said the CCI order.

It may be noted that Ibibo Group business was acquired by MMT through MMT India under the brand name MakeMyTrip, whereas Ibibo India runs under the brand name Goibibo.

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United Breweries Challenges Rs 752 Crore CCI Penalty Before NCLAT

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The Competition Commission of India on September 24, 2021, imposed a fine of Rs 751.8 crore for alleged cartelisation in the sale and supply of beer.

Beer maker United Breweries Ltd (UBL) has approached the appellate tribunal NCLAT against Rs 751.8 crore penalty imposed on the company by the fair trade regulator CCI.

The Competition Commission of India on September 24, 2021, imposed a fine of Rs 751.8 crore for alleged cartelisation in the sale and supply of beer.

“The company has now filed an appeal before the National Company Law Appellate Tribunal (NCLAT) against the CCI order dated September 24, 2021,” said UBL in a regulatory update.

The NCLAT is the appellate authority over the CCI. It hears appeals against any direction issued or decision made or order passed by CCI.

 Earlier in October, UBL, which is now controlled by Dutch-based multinational Heineken, had said it was in process of preparing the grounds of the appeal, which was expected to be filed within two months from the date of order.

On the basis of the legal advise “the company believes that it has a strong case on merits for successful appeal on this matter”, UBL had said on October 27, in post earning statement for July-September quarter.

Earlier this year, Heineken had acquired additional ordinary shares in UBL on June 23 taking its shareholding in the company from 46.5 per cent to 61.5 per cent.

The CCI had imposed penalties totalling over Rs 873 crore on UBL, Carlsberg India, All India Brewers’ Association (AIBA) and 11 individuals for cartelisation in the sale and supply of beer.

The final order was passed against United Breweries Ltd (UBL), SABMiller India Ltd, now renamed as Anheuser Busch InBev India Ltd (AB InBev), and Carlsberg India Private Ltd (CIPL), among other entities.

In its 231-page order, which had come nearly four years after ordering a detailed probe, the CCI had also directed the companies, association and individuals to “cease and desist” from anti-competitive practices in the future.

The period of cartelisation was considered to be from 2009 to at least October 10, 2018, with Carlsberg India joining in from 2012 and AIBA serving as a platform for facilitating such cartelisation since 2013. All three beer companies were lesser penalty applicants before the regulator.

(PTI)