Delhi HC Reserves Order on Google’s Contentious Billing Policy, Leaving Indian Startups on Edge
- ByStartupStory | April 20, 2023
The Delhi High Court has reportedly reserved its decision on a plea submitted by Indian startups, represented by ADIF, seeking the temporary suspension of Google’s new user choice billing system. Following two days of back-to-back arguments by all parties involved, Justice Tushar Rao Gedela stated, “Arguments heard. Order is reserved.”
ADIF’s legal representative, Abir Roy, has requested the Delhi High Court to issue directives to the Competition Commission of India (CCI) for investigating Google’s alleged infringement of the watchdog’s October antitrust ruling, given the approaching April 26 deadline for the implementation of the new payment system. Roy has cited the recent move by CCI that allows clearance of M&A deals without a quorum, calling for invoking the ‘doctrine of necessity’ for ADIF’s separate complaint against Google for flouting antitrust directives. The Match Group, represented by advocate Jayant Mehta, has also supported the claim for invoking the same doctrine.
Abir Roy, the legal counsel of ADIF, has emphasized the importance of CCI’s investigation into Google’s alleged antitrust violations, stating that failure to intervene would harm app developers and create a distorted market. However, Additional Solicitor General N Venkataraman, representing CCI, argued against hearing the antitrust plea at this point, given the ongoing appointment process of CCI members. Venkataraman also clarified that CCI is currently taking up M&A cases as per Competition Act mandates. Google’s legal team, represented by advocates Sajan Poovayya and Sandeep Sethi, opposed ADIF’s plea and argued that there was no material justification for invoking the doctrine in the matter.
Following CCI’s imposition of fines exceeding INR 2,200 Cr and mandate for a comprehensive revamp of its Indian operations and policies, Google implemented several changes and introduced a new user choice billing system allowing third-party payment systems for app developers. The new system levies commissions ranging from 11-26%, replacing the previous 15-30% rate. However, ADIF has alleged that the new billing policy is a disguised version of the previous one and an attempt by Google to bypass CCI’s antitrust directives. The plea contends that the new system projects a misleading portrayal of providing freedom to developers while leaving the market exposed to Google’s abuse of dominant market position.
Google is currently facing a series of regulatory hurdles in one of its most significant global markets. The outcome of the case, with the HC reserving an order, will determine whether the judgement provides relief or exacerbates the situation for the tech giant.
Calling all entrepreneurs, investors and business owners! The wait is finally over. The 2nd edition of Startup Story B2B Connect is back with a bang – and this time, we’re taking it up a notch. With more startups, more investors and bigger opportunities than ever before, this is your chance to connect, collaborate and take your business to the next level. Get ready for an unforgettable networking experience that’s set to change the game. Stay tuned for all the exciting updates! Register Now Here.
Follow Startup Story
Related Posts
