Delhi HC asks CCI to consider startups’ plea against Google

Petitioners are up against the new user choice billing system

In a major relief to digital start-ups in the country, the Delhi High Court on Monday directed the Competition Commission of India (CCI) to consider the application moved by the Alliance of Digital India Foundation challenging the American tech giant Google’s new in-app billing policy before April 26.

In its petition to the Delhi High Court, the Alliance of Digital India Foundation (ADIF), whose members include the companies like Paytm, Matrimony.com and MapMyIndia, had alleged that Google was engaging in anti-competitive conduct by implementing the user choice billing system (UCB).

“There is no impediment, legal or otherwise, in directing the CCI to take up the applications under Section 42 of Competition Act as filed by the petitioner for hearing and considering the same in accordance with law on or before 26 April, 2023,” Justice Tushar Rao Gedela said in the order.

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However, the single-judge bench did not pass any stay on the implementation of Google’s user choice billing system.

Google plans to implement its user choice billing system from 26th April. ADIF has alleged that Google’s new billing system violates the anti-trust watchdog's October 25, 2022 order.

Under Google’s proposed new in-app payment system, app developers will have to pay a service fee to Google ranging from 6-26% for in-app purchases and subscriptions, depending on the type of app/service and the annual revenue it generates on Google Play, as compared to the regular 10-30% service fee.

If a user pays through the alternative billing system (also termed user choice billing system), the transaction will still be subjected to a service fee, but at a 4% rate reduction.

Indian start-ups have been aggressively opposing Google’s new billing policy.

Anupam Mittal, founder of Shaadi.com, has termed Google’s new billing system as “neo-colonialism at its worst.” “Hope the media, courts, and the Prime Minister's office are taking note… the Digital East India Co is here,” Mittal tweeted on Saturday.

In October 2022, the CCI fined Google Rs 936.44 crore for abusing its dominant position with regard to its Play Store policies. Google is currently pursuing its appeal in the National Company Law Appellate Tribunal (NCLAT).