Google Appeals Delhi High Court’s Order on User Choice Billing System
- ByStartupStory | April 26, 2023
Google has filed an appeal in the Delhi High Court against the order to investigate complaints on its user choice billing system. The court declined to hear the matter today, despite senior advocate Sandeep Sethi’s request for an urgent listing. The complaints were filed by the Alliance of Digital India Foundation (ADIF), and Google’s appeal seeks to overturn the Competition Commission of India’s (CCI) involvement in the matter.
The Competition Commission of India (CCI) began a hearing on Tuesday (April 25) regarding Google’s recent changes to its user choice billing system, which are set to go into effect on April 26. This comes after the Alliance of Digital India Foundation (ADIF) filed complaints alleging anti-competitive behavior by Google. The CCI’s involvement was ordered by Justice Tushar Rao Gedela on April 24, who directed them to address the complaints under Section 42 and provide a decision by the April 26 deadline. The hearing is ongoing.
Google’s appeal in court on Tuesday argued that the Competition Commission of India (CCI) did not have the necessary quorum to address the complaints filed by the Alliance of Digital India Foundation (ADIF) regarding Google’s user choice billing system. According to the Competition Act, a quorum of at least three members is required for CCI meetings. The ADIF had previously accused Google of taking advantage of the lack of quorum to implement its new billing policy and requested that the court invoke the ‘doctrine of necessity’ to allow the CCI to adjudicate the case without a quorum. As representatives of Indian startups, the ADIF had requested an urgent review of Google’s in-app purchase billing system by the CCI.
Google’s user choice billing system allows developers on the Google Play Store to integrate third-party payment options, resulting in a 4% reduction in commission fees, which typically range between 11-26%. The system was introduced by Google after the Competition Commission of India (CCI) imposed a penalty of more than INR 2,200 crore on the US company in two separate rulings last year.
The Alliance of Digital India Foundation (ADIF) is objecting to Google’s commission fees and its access to user data when alternative payment methods are used. Several ADIF members have criticized Google’s policy, with Matrimony CEO Murugavel Janakiraman obtaining an injunction against the tech giant in the Madras High Court on April 24. Janakiraman referred to Google as a ‘threat’ to Indian digital startups. Similarly, People Group’s CEO Anupam Mittal compared Google’s commission fees to the ‘lagaan’ paid by Indian farmers during the colonial era and referred to the tech giant as the ‘Digital East India Company.’
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