App Billing Policy: DHC Issues Notice In Google Appeal Against Order Directing CCI

The Delhi High Court today issued notice to the Competition Commission of India (CCI) and several start-ups in an appeal by Google challenging directions to the competition regulator to decide the plea against its new in-app billing policy.

The division bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad listed the case for further consideration on July 19.

The single-judge passed the order on Monday while dealing with a plea filed by the Alliance of Digital India Foundation (ADIF), members of which include PaytM, Matrimony.com, TrulyMadly, MapMyIndia and several other startups.

Justice Gedela directed CCI to deal with the applications filed by ADIF and dispose of them by April 26 (today).

The Court ordered that, “There is no impediment, whether legal or otherwise, in directing the CCI to hear the applications filed by the petitioner under section 42 and decide it on or before April 26.”

Earlier, Google mandated app developers to use its payment method named Google Play Billing System (GPBS) for all transactions, including paid app downloads and in-app purchases.

Reportedly, this GPBS entailed a commission of 15-30% and had a settlement period of 45 days.

However, in October 2022, the CCI slapped a fine on Google and directed it to allow use of 3rd-party billing services for in-app payments.

Before the High Court, ADIF argued that Google is attempting to bypass the CCI direction by introducing a policy called ‘Delhi High Court issues notice in Google appeal against order directing CCI to decide start-ups challenge to in User Choosing Bill (UCB) which will come into effect from April 26. The petitioners contended that the UCB is a cloaked version of the GPBS, which projects the hoax of giving liberty to app developers to opt for 3rd-party payment processors.

The plea stated that, even when a user uses such 3rd-party payment processors, Google will be charging a service fee at 11-26% from the developers.

Therefore, ADIF informed the High Court that it filed several applications before the CCI against Google’s non-compliance, but the Commission is yet to take any action owing to lack of quorum. As a result of this, the market remains vulnerable to abuse of its dominant position by Google.

Therefore, it sought directions to Google to keep the implementation of the UCB in abeyance till the CCI adjudicates on their applications.

Also, it sought are directions to the tech company to not charge any commission when transactions happen through 3rd-party payment processors.