Startups move Delhi High Court against Google's new in-app billing policy

A group of tech startups have approached the Delhi High Court for directions to Google to keep its new in-app billing fee system in abeyance till the Competition Commission of India (CCI) completes its investigation into the tech giant’s alleged non-compliance with its orders..The petition will be heard tomorrow by Justice Prathiba M Singh..According to a petition filed by Alliance of Digital India Foundation (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 has 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 contend 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 has 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.Google is taking advantage of the lack of quorum of the CCI and are engaging in anti-competitive conducts which will cause irreversible harm to the members of the petitioner and other app developers in the market and cause distortion in the market, the plea stated..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..AIDF's petition has been drafted by Sarvada Legal.