News Update

Delhi High Court Denies Immediate Relief to ADIF Over Google’s Payment System

• ByStartupStory     |    April 19, 2023

The Delhi High Court has refused to grant immediate relief to the Alliance of Digital India Foundation (ADIF), which sought the suspension of Google’s new user choice billing system. The court has directed the parties involved to file additional submissions before it by Tuesday evening and will hear the plea on Wednesday ahead of the April 26 deadline for the implementation of the new payment system.

Under the new system, app developers will have to pay a commission of 11-26% as against 15%-30% earlier. ADIF has alleged that the new system flouts antitrust norms and has sought the Competition Commission of India (CCI) to adjudicate on the matter prior to April 26 or keep the implementation of the new billing system in abeyance till the competition watchdog reaches a consensus on the complaint.

Reacting to the submission, Justice Tushar Rao Gedela observed that there is a conflict of commercial interest and sought clarification as to why the ADIF cannot challenge the new billing policy after its implementation.

Abir Roy, the ADIF counsel, argued that apart from paying commissions, the new billing system mandates submission of transaction data of users to Google, including those who opt for third-party payment options. Citing the CCI’s antitrust ruling from October last year, Roy argued that Google could use all the data flowing into its system post April 26 to push its own apps.

This latest development comes nearly a week after Justice Pratibha Singh recused herself from hearing the plea without specifying any reason. Google has not yet commented on the matter.

The ADIF represents Indian startups and entrepreneurs and has been vocal in its opposition to Google’s new payment system. The organization had earlier written to the CCI, stating that the new system could have an adverse impact on small and medium-sized businesses and would result in a monopoly for Google.

This is not the first time that Google has been embroiled in a legal battle over its payment policies. Last year, the company was fined by the European Union for antitrust violations related to its payment system, and it is currently facing similar charges in the United States. It remains to be seen how this latest legal battle will play out and whether Google will be able to implement its new payment system in India as planned.

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