The Ministry of Corporate Affairs (MCA) is calling a performance review of working of the Competition Commission of India (CCI) amidst growing concern about inaction by the regulator in deciding the complaints filed by app developers against tech giant Google alleging anti-competitive conduct and non-compliance with CCI’s previous rulings. 

A meeting in this regard is likely to be convened by the Finance and Corporate Affairs Minister Nirmala Sitharaman during this month, sources in the Ministry said. Apart from seeking the status of regulations that are required to be given effect to post the recent amendments in the competition law, the review meeting may also see the regulator getting quizzed over delay in investigation and disposal of cases by CCI, sources said. 

A number of cases against tech giants, namely Google, Meta, Amazon, Flipkart, WhatsApp, Zomato and Swiggy, have been  pending with the regulator for years. 

Startups move SC alleging inaction

A recent plea filed by startups before the Supreme Court challenging a ruling of the Madras High Court re-directing their challenge to tech giant Google’s User Choice Billing (UCB) to CCI has cast serious insinuation on the ability of CCI to effectively intervene against Big Tech and deliver justice. 

In the affidavit filed by startups before the Supreme Court, they have accused the regulator of “non-adjudication” in the disposal of their applications challenging UCB and complaints alleging non-compliance by tech giant of CCI’s previous ruling directing Google to allow third-party billing services providers on Play Store. 

The appeals filed by startup claim that there has been “no adjudication by the CCI till date (more than 15 months)” over complaints filed against Google. 

The domestic start-ups have pleaded that they are now left “remediless” with the Madras High Court rejected their plea and the “issues being left non-adjudicated” by CCI. The petition is listed before a SC Bench headed by the Chief Justice of India for admission on Friday.

Earlier, startups moved to Madras High Court on the civil side, challenging UCB, and during the pendency of this proceeding, the High Court protected them from delisting from Play Store. 

Google, however, moved the application before HC, seeking rejection of their suit by arguing that startups have an alternative and efficacious remedy before CCI. 

The Madras High Court found merit in the plea and dismissed the suits, relegating the startups to CCI. This direction is being challenged by startups before SC, where they have hinted at CCI being derelict in the discharge of its statutory mandate by sitting over their plea for long without even considering their prayer for interim relief.  

Growing concerns

The annual reports of CCI on its website reflect a continuous decline in the number of antitrust filings before the regulator. 

The final orders passed by CCI are also in appeals before the Appellate Tribunal/ SC, and none of its key rulings has attained finality. The recovery of the penalty is a fraction (less than one per cent) of the penalties imposed by the regulator. 

News publishers’ case

The antitrust case filed by news publishers against Google has been pending  before the watchdog for more than two years even though CCI directed its investigation arm (Director General) in January 2022 to wrap up investigations within two months, as per the prima facie order available on its website.

The competition watchdog is also yet to notify even a single set of regulations which are required to operationalize the amendments introduced through the Competition Amendment Act, 2023 which received the assent of the President in April last year.

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