Google's decision to implement a new billing policy for app developers on its Play Store has sparked a legal battle with a group of Indian startups who allege that the tech giant is abusing its dominant position and violating antitrust norms.
According to ADIF, Google's UCB system is not in compliance with the CCI's order issued in October 2022, which found Google guilty of imposing unfair and discriminatory conditions on app developers using its Play Store platform. The CCI had ordered Google to stop forcing app developers to use its own payment system and allow them to choose alternative methods without any penalty or restriction.
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| Picture source: deccanherald.com |
The Alliance of Digital India Foundation (ADIF), an industry body representing over 350 Indian startups such as Paytm, Matrimony, MapmyIndia and TrulyMadly, has filed a complaint with the Competition Commission of India (CCI), the country's antitrust regulator, seeking an urgent review of Google's new user choice billing (UCB) system that goes into effect from April 26, 2023.
According to ADIF, Google's UCB system is not in compliance with the CCI's order issued in October 2022, which found Google guilty of imposing unfair and discriminatory conditions on app developers using its Play Store platform. The CCI had ordered Google to stop forcing app developers to use its own payment system and allow them to choose alternative methods without any penalty or restriction.
However, ADIF claims that Google's UCB system still imposes various restrictions on app developers who opt for third-party payment systems, such as requiring them to pay a commission ranging from 11% to 26% to Google, displaying a warning message to users before downloading such apps, and limiting their access to certain features and services on the Play Store.
ADIF argues that these restrictions are anti-competitive and harm the interests of Indian app developers and consumers. It also contends that Google's UCB system gives an unfair advantage to its own apps and services that are exempted from these restrictions.
ADIF had approached the Delhi High Court earlier this month, seeking a direction to CCI to look into its complaint before the April 26 deadline for implementing the UCB system. The court, on April 24, ordered CCI to take up and dispose of ADIF's application by April 26.
Google, on the other hand, has filed an appeal in the Delhi High Court against the single-judge order directing CCI to take up ADIF's complaint. Google has also sought an urgent listing of its appeal before a bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad.
Google has defended its UCB system as a way to provide more choice and transparency to app developers and users. It has also claimed that its UCB system is in line with the CCI's order and that it has made several concessions and exemptions for Indian app developers in response to their feedback.
The outcome of this legal dispute will have significant implications for the future of India's digital ecosystem, as Google's Play Store is the dominant platform for distributing apps in the country, with over 95% market share. It will also test the CCI's ability and authority to enforce its antitrust rulings and protect fair competition in the online space.
ADIF argues that these restrictions are anti-competitive and harm the interests of Indian app developers and consumers. It also contends that Google's UCB system gives an unfair advantage to its own apps and services that are exempted from these restrictions.
ADIF had approached the Delhi High Court earlier this month, seeking a direction to CCI to look into its complaint before the April 26 deadline for implementing the UCB system. The court, on April 24, ordered CCI to take up and dispose of ADIF's application by April 26.
Google, on the other hand, has filed an appeal in the Delhi High Court against the single-judge order directing CCI to take up ADIF's complaint. Google has also sought an urgent listing of its appeal before a bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad.
Google has defended its UCB system as a way to provide more choice and transparency to app developers and users. It has also claimed that its UCB system is in line with the CCI's order and that it has made several concessions and exemptions for Indian app developers in response to their feedback.
The outcome of this legal dispute will have significant implications for the future of India's digital ecosystem, as Google's Play Store is the dominant platform for distributing apps in the country, with over 95% market share. It will also test the CCI's ability and authority to enforce its antitrust rulings and protect fair competition in the online space.
Source: economictimes.indiatimes.com
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