The Madras High Court on Friday dismissed the appeals preferred by 13 Indian companies challenging Google’s new billing policy.
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Madurai: Today(19/01/2024) the Madras High Court made a pivotal decision, dismissing appeals filed by 13 Indian companies against Google’s new billing policy. The bench, led by Chief Justice SV Gangapurwala and Justice PD Audikesavalu, however, extended an interim protection against delisting for these companies for an additional three weeks, after which this protection will cease. A detailed order on this ruling is still pending.
This legal battle traces back to August of the previous year when a single judge dismissed 14 petitions from Indian startups challenging Google’s introduction of a new user choice billing system. The judge pointed out that such matters fall under the purview of the Competition Commission of India (CCI). The judge emphasized that the remedies available under the Competition Act are more comprehensive than those a civil court can offer. Furthermore, the court noted that Section 61 of the Competition Act explicitly prevents civil courts from adjudicating cases within the CCI’s jurisdiction.
During the appeal hearing, Senior Advocate P Chidambaram, representing the companies, argued that the only recourse available through the CCI was a peer review, and if dissatisfied, the next step would be to approach the Reserve Bank of India (RBI). He highlighted that the CCI’s provision only allowed for a fine of five lakh rupees, a sum he deemed insignificant for a corporation like Google.
Chidambaram also contended that the jurisdiction of civil courts is only ousted when an effective remedy is available elsewhere. In this case, he argued, the CCI could not offer an effective remedy, thus not negating the jurisdiction of civil courts. He further pointed out the significant difficulties faced by the companies, as non-compliance with Google’s new billing policy could lead to their delisting, effectively eradicating their presence in the e-market.
The startups’ main contention was that in 2020, Google mandated the exclusive use of its Google Play Billing System (GPBS) for processing payments for downloading paid apps and in-app purchases. After the CCI’s order on October 25, 2022, directing Google not to restrict app developers from using third-party billing/payment processing services, Google introduced an “Alternative Billing System/User Choice Billing” alongside GPBS, which the companies argued was an attempt to circumvent the CCI’s order.
The companies accused Google of exploiting its monopoly over the Android platform, compelling app developers to comply with their payment policy, and imposing service fees of 11% and 26% for payments made through the Alternate Billing System.
The case, represents a significant moment in the ongoing debate over the power dynamics between large tech corporations and smaller companies, particularly in the context of market monopolies and the rights of app developers in the digital marketplace.
CASE TITLE: Info Edge (India) Ltd. v Google India Ltd and Others (batch cases)
Case No: OSA(CAD) 97/2023
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