CCI Denies Leaking Confidential Probe Report Against Google; Tells Delhi High Court That Google Should Sue Media Houses

LIVELAW NEWS NETWORK

24 Sep 2021 6:56 AM GMT

  • CCI Denies Leaking Confidential Probe Report Against Google; Tells Delhi High Court That Google Should Sue Media Houses

    The Competition Commission of India on Friday denied the allegations levelled by Google, accusing the anti-trust body of leaking a confidential probe report against the company to the media.Additional Solicitor General N. Venkataraman, appearing for the Commission before Justice Rekha Palli, suggested that instead of making bald allegations against a Government body, the search engine...

    The Competition Commission of India on Friday denied the allegations levelled by Google, accusing the anti-trust body of leaking a confidential probe report against the company to the media.

    Additional Solicitor General N. Venkataraman, appearing for the Commission before Justice Rekha Palli, suggested that instead of making bald allegations against a Government body, the search engine company should sue the concerned media houses that claim to have accessed the report.

    "A truncated affidavit is filed (by Google). An accusation is made against a Government body. Not a word in their affidavit, showing how we have done it. All tall claims," the ASG submitted.

    He added,

    "The TOI said it did an exclusive review of the report. Did it say CCI gave the report? They should file a suit against TOI, if they are so aggrieved."

    The submission was made after Dr. AM Singhvi, appearing for Google, produced a news report published by TOI claiming to have exclusively reviewed the DG's report, allegedly finding Google guilty of stifling in the mobile operating system and related markets.

    The ASG maintained that the Commission has abided by Section 57 of the Competition Act, 2002, which provides that information of any enterprise obtained by the CCI shall not be disclosed without the prior permission of the enterprise in writing.

    "As on date, no confidential report is leaked. In the re appraisal we have answered all the queries. We have said we will not reveal the signatory name," the ASG submitted.

    He alleged that the instant case was a frivolous one, filed only to frustrate CCI's probe. "They are shocked to receive this order that we passed after 6 years of turbulences. They want to frustrate this procedure so they don't have to prove their case," the ASG argued.

    Google has approached the High Court alleging that the anti-trust body has prepared an adverse investigative report against Google, which it is now leaking to the media. 

    It has also challenged an order of the DG declaring that only 12% of the probe report is confidential in nature.

    During his submissions, Singhvi pointed out that the leak happened while the report was is CCI's custody. He further alleged this is not the first case of leak from CCI and argued that the Commission has a "habitual defaulter nature". He relied on Ericsson v. CCI where the Delhi High Court had taken note of alleged leak of confidential report and had observed thus:

    "CCI, the DG and employees of the CCI are obliged to maintain confidentiality and secrecy of the confidential information provided by Ericsson and must take adequate measures to maintain the same. In a given case of negligence, the CCI/DG may not be immune from a claim of loss or damages if they fail to maintain confidentiality/secrecy of the sensitive information provided to them."

    Singhvi alleged that media houses like Reuters and TOI have been given access to the confidential probe report whereas Google is yet to receive it.

    "It's okay Dr. Singhvi, even our orders are not uploaded and they are reported all over the press," Justice Palli said.

    To this Singhvi responded,

    "It's different. Our report is protected under Section 57. But Reuters has the report. This is a statutory violation."

    Earlier, Google had issued a press note claiming that the leak impairs its ability to "defend" itself. Today, Singhvi argued, "This report can only be sent from DG to CCI, not even to Google. The statute says that."

    So far as the DG's order deciding the confidentially zone is concerned, Singhvi submitted:

    "If footprint of confidentiality and non-confidentiality amounts to 100 units. The DG holds only 10% is confidential. Whereas according to us it is 50%...Confidentiality is reduced to 9 out of 81, i.e. 12%. Even in that 12%, there's leakage like a sieve."

    The Bench however observed that it cannot form an opinion on the confidentiality zone unless it goes through the impugned order (which was filed only today in a sealed cover).

    Accordingly, the hearing has been adjourned to Monday.

    On September 18, 2021, a confidential interim fact-finding report submitted by the Director General's office to the Competition Commission of India (CCI) relating to an ongoing investigation into Google's Android smartphone agreements was leaked to the media, Google has claimed in a press release. The US-based tech giant claims that it is yet to receive a copy of this confidential report.

    "Protecting confidential information is fundamental to any governmental investigation," a Google spokesperson reportedly said.

    The probe accuses Google of imposing and forcing one-sided contracts on Android devices as well as app makers to ensure that its own products and apps maintain primacy in consumer usage, and come pre-installed and as default options to get the highest user preference, reported TOI.

    Case Title: Google v. CCI

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