Indian companies' challenge against Google's billing policy is denied by Madras High Court

Indian companies' challenge against Google's billing policy is denied by Madras High Court

Indian companies' challenge against Google's billing policy is denied by Madras High Court

But by requesting that Google hold off on delisting these firms' mobile apps for a period of three weeks, the court has granted them protection. It may now be necessary for these corporations to file an appeal against this ruling with the Supreme Court.

Madras HC issues a favorable ruling to Google

A two-judge panel of the Madras High Court dismissed Google's appeal against its app charging policy on January 19, dealing a setback to Indian businesses.

But by requesting that Google hold off on delisting these startups' mobile apps for a week, the court has granted them protection. It may now be necessary for these corporations to file an appeal against this ruling with the Supreme Court.

A single judge's ruling from the high court, which declared the petitions filed by startups like Matrimony against the IT behemoth "not maintainable," was contested by the startups. The startups have accused Google of exploiting its dominating position, and the high court has decided that the CCI has the authority to rule on this matter.

According to the High Court, the CCI has the authority to force any company found guilty of abusing its dominant position to stop doing so. As a result, any order the CCI issues in these situations will be binding on all companies. But in this instance, the only party to get such an order is the one that has objected to Google's policy.

Early in 2023, the court issued an interim order against these firms, directing them to pay Google a reduced 4 percent charge in exchange for utilizing the in-app payment mechanism. The tech giant was instructed not to take any of them down from the Play Store.

This comes after the petitioners had challenged Google's notifications to embrace its new app payment policy or risk having their apps removed from the app marketplace in an appearance before the state high court in recent months. Google said that it would begin implementing its Play billing policy in India in May 2023.

Google said in February 2023 that starting on April 26, 2023, app developers will be able to provide an other in-app payment method for users in India. The technical head was instructed not to do this by the CCI, and it was deemed that this complied with their instructions. Among other things, app developers were prohibited from utilizing third-party charging systems last year.

In October 2022, Google was fined Rs 936.44 crore by the Institutional Competition Commission of India (CCI) for abusing its dominant position with regard to its Play Store policy. In addition, the CCI issued a cease-and-desist order. was penalized.

It has instructed the internet giant to implement a number of changes to the company's app payment rules within three months, including prohibiting app developers from charging third parties or charging users inside apps on Google Play. Don't put restrictions on utilizing services for payment processing.