Sundar Pichai-led Google and the Competition Commission of India (CCI) have been asked by National Company Law Appellate Tribunal (NCLAT) to respond to challenges regarding Play Store billing policy. Two startups, Kuku FM and Shaadi.com recently moved to NCLAT to appeal against the CCI ruling that decline to stay user choice billing system. It even allowed Google to delist the apps not complying with it.
The Indian Broadcasting & Digital Foundation has also moved an appeal. It is expected that this matter will be taken up by for further consideration on May 24.
For the unversed, this matter came into light when Google’s new UCB system was introduced in 2023. The tech giant then started asking developers a service fee of 11 per cent to 26 per cent for downloads of paid apps and in-app purchases made through Google Play Store. Additionally, the system gives app developers an option to choose a third-party billing system instead of Google’s billing payment system.
Notably, Mebigo Labs Pvt Ltd, the company behind Shaadi.com and KuKu FM, the Indian Broadcasting and Digital Foundation (IBDF), and the Indian Digital Media Industry Foundation (IDMTIF) and more have been seeking interim protection from Google’s services fee until the CCI completes its investigation into the company’s said policy.
The startups appealed to NCLAT to instruct Google not to charge the service fee until the next hearing. However, they did not get a nod for this interim protection.
In March, Google removed some apps like Bharat Matrimony, owing to the disagreement on the service fee for in-app charges. The developers moved to CCI that declined to make any changes and stated that the startups failed to present sufficient evidence to support their request for immediate action.
Companies challenging the CCI’s order stated that the order ignored the facts and evidence. They added that the new user choice billing was nothing but a repackaged version of Google Play Billing System.
Zeeshan Farooqui, Partner, Dispute Resolution, King Stubb & Kasiva, Advocates and Attorneys, told Business Today, “As the appellate court, NCLAT has the authority to thoroughly examine the merits of any challenges against a competition order, potentially resulting in a partial or complete validation or annulment of the existing CCI directive. Given the significant ramifications of any competition litigation on business operations, the upcoming NCLAT appeal hearings are crucial, particularly regarding ongoing discussions regarding service fee arrangements between Google and emerging startups.”
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