Delhi High Court issues notice in Google appeal against order directing CCI to decide start-ups challenge to in-app billing policy

The Delhi High Court on Wednesday issued notice to the Competition Commission of India (CCI) and several start-ups in an appeal by Google challenging directions to the competition regulator to decide the plea against its new in-app billing policy. .A Bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad listed the case for further consideration on July 19..The single-judge had passed the order on Monday, while dealing with a plea filed by Alliance of Digital India Foundation (ADIF), members of which include PaytM, Matrimony.com, TrulyMadly, MapMyIndia and several other startups.Justice Gedela had directed CCI to deal with the applications filed by ADIF and dispose of them by April 26 (today)."There is no impediment, whether legal or otherwise, in directing the CCI to hear the applications filed by the petitioner under section 42 and decide it on or before April 26," the Court had ordered..According to ADIF, Google earlier mandated app developers to use its payment method named Google Play Billing System (GPBS) for all transactions, including paid app downloads and in-app purchases.This GPBS reportedly entailed a commission of 15-30% and had a settlement period of 45 days.However, in October 2022, the CCI slapped a fine on Google and directed it to allow use of third-party billing services for in-app payments.Before the High Court, ADIF argued that Google is attempting to bypass the CCI direction by introducing a policy called ‘User Choice Billing’ (UCB) which will come into effect from April 26.The petitioners contended that the UCB is a cloaked version of the GPBS, which projects the hoax of giving liberty to app developers to opt for third-party payment processors.But, even when a user uses such third-party payment processors, Google will be charging service fee at 11-26% from the developers, the plea stated..ADIF had informed the High Court that it filed several applications before the CCI against Google’s non-compliance, but the Commission is yet to take any action owing to lack of quorum. As a result of this, the market remains vulnerable to abuse of dominant position by Google.It, therefore, sought directions to Google to keep implementation of the UCB in abeyance till the CCI adjudicates on their applications. Also sought are directions to the tech company to not charge any commission when transactions happen through third-party payment processors.