The Supreme Court’s recent denial of interim relief to ten Indian startups challenging Google Play’s billing policy accentuates the potential ramifications, allowing for the prospective removal of non-compliant apps.
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The Supreme Court of India has agreed to examine the appeals of ten Indian startups against Google’s controversial Play Store billing policy. This decision, made on February 12, marks the latest development in that has seen various twists and turns since its inception last year.
The startups had contested Google’s billing policy on several grounds, arguing that it unfairly impacts their operations and market competitiveness. However, their efforts faced a setback when the Madras High Court, in January, dismissed their complaints, stating that the issue falls within the jurisdiction of the Competition Commission of India (CCI) and the Reserve Bank of India (RBI).
The Supreme Court’s intervention comes as a glimmer of hope for these startups, although it has refrained from granting them interim relief. The court issued a notice to Google and scheduled the next hearing for March 19. The startups had sought an interim order to prevent Google from delisting their apps from the Play Store while their appeals were under consideration.
Despite the court’s refusal to grant such relief, the startups have made a direct plea to Google, requesting the tech giant to abstain from any punitive actions until the matter is conclusively heard. Should Google decide otherwise, the affected apps may have to adhere to the new billing policy or face removal from the Play Store.
In April 2023, Matrimony.com initiated a legal challenge against Google’s new billing policy, securing a temporary injunction from the Madras High Court that prevented Google from delisting Matrimony.com’s apps. This injunction, initially valid until June 1, 2023, paved the way for further legal actions.
In June and July 2023, with eight startups joining Matrimony.com in June and five more in July. The Madras High Court extended the interim injunction to cover all participating startups, preventing Google from removing their apps. However, the court mandated that the companies pay a 4 percent commission to Google during the ongoing legal proceedings.
In August 2023, there was a setback at the Madras High Court, as a single judge dismissed the petitions, stating that the matter fell under the jurisdiction of the competition regulator and the RBI. The startups, undeterred, appealed this decision, seeking legal recourse to challenge the dismissal.
By January 2024, a division bench of the Madras High Court upheld the earlier single judge order, dismissing the petitions. Despite this, the court allowed the interim protection, preventing Google from delisting the apps, to continue for an additional three weeks. The startups swiftly filed an appeal at the Supreme Court, seeking justice at the highest legal echelon.
On February 9, 2024, the interim protection granted by the Madras High Court concluded, giving Google the authority to remove the apps of the complainants if found to be in violation of the company’s billing policy. Surprisingly, Google refrained from taking immediate action.
On February 12, 2024, the Supreme Court intervened by accepting the appeals, issuing a notice to Google, and setting the next hearing date for March 19. In a crucial development, the court denied interim protection to the startups, allowing Google the liberty to potentially delist the apps from the Play Store.
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The Competition Commission of India (CCI) is actively investigating Google Play’s billing policy following an antitrust order issued in October 2022. This order prompted Google to implement the controversial billing policy. Developers raised concerns about its non-compliance with the antitrust order, prompting the CCI to launch its own probe. The current status of this investigation is uncertain.
The Supreme Court’s March hearing on the Google Play billing policy could have significant global implications for app developers and digital marketplaces. The tech community awaits the resolution eagerly.
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