The Madras High Court in a recent judgement has temporarily restrained Google from delisting Matrimony.com and 13 other digital companies from its Play Store.
A bench comprising Chief Justice SV Gangapurwala and Justice PD Audikesavalu granted interim injunction while hearing the final arguments pertaining to a batch of appeals presented by Matrimony and others contesting a single judge’s decision that denied them relief.
On August 8, a single judge of the Madras High Court dismissed 14 out of 16 pleas originating from Indian startups and technological corporations, including Bharat Matrimony, Shaadi.com, and Unacademy, against Google’s application billing policy.
The single judge, Justice S Sounthar, established that this matter has been held within the jurisdiction of the Competition Commission of India and underscored that the remedies offered under the Competition Act were notably more comprehensive than those available within a civil court.
The two remaining petitions, challenging the newly introduced billing system, were lodged by Disney+ Hotstar and Testbook.
Senior Counsel P Chidambaram, representing Matrimony.com, apprised the division bench that the single judge had not cited judgments or law or jurisprudence to justify the assertion that digital firms could not seek recourse within a civil court.
He stated, “By this argument, I can’t file a suit against a bank because RBI is the authority. That is not the case. Suits are filed against banks every day. It will not take away my right to sue. To the extent that the CCI can grant relief, the jurisdiction of the civil courts is ousted. But for those reliefs that cannot be granted by the CCI, the jurisdiction of the civil court is not ousted.”
Previously, Google mandated all application developers to utilize its Google Play Billing System (GPBS) for all financial transactions, encompassing paid application downloads and in-app acquisitions. Developers were subjected to a commission ranging between 15 – 30% for the services facilitated by Google.
Google’s updated billing framework permits users to opt for an “alternative billing” option apart from GPBS. It enables application developers to utilize 3rd-party billing systems while imposing a service charge ranging from 11 – 26%.
Matrimony and other application developers have opposed their opposition to this fee within the purview of the High Court.
The Court will hear further arguments on August 23.
