Indian startups have requested a court to suspend Google’s new in-app billing fee system until the country’s antitrust body investigates the U.S. tech giant for non-compliance with its directives.
The Alliance of Digital India Foundation has made this request as it claims that Google’s new system charges a high service fee, despite an antitrust directive in October to allow the use of third-party billing services for in-app payments.
The 744-page filing, which was submitted on April 10 at the Delhi High Court, argues that the antitrust body has yet to hear its complaint promptly, even as Google’s implementation date of the User Choice Billing system on April 26 is nearing.
The ADIF has asked the court to “keep the implementation of Google’s UCB in abeyance” until the complaint is heard.
The court is expected to hear the plea later this week. While Google has declined to comment on the matter, the Competition Commission of India did not respond.
This is the latest dispute between Google and rival startups, who have been criticizing the U.S. tech giant for what they consider to be unfair business restrictions.
Last October, the CCI imposed a $112 million fine on Google, stating that the company must stop forcing developers to use its proprietary in-app payment system, which it labeled as an abuse of Google’s dominant market position.
However, Google denied any wrongdoing and challenged the antitrust ruling. It claims that the new service fee system supports investments in Google Play app store and the Android mobile operating system, ensuring that it distributes them for free, and covers developer tools and analytic services.
Despite Google’s claims, Indian startups argue that Google’s UCB system still imposes a service fee of 11-26%, compared to the earlier in-app payment system that charged a fee of 15-30%.
According to the ADIF filing, the new system is “cloaked as another version” of Google’s earlier system.
Sijoitus Startup Services, a member of the ADIF said, “The implementation of UCB will result in irreparable loss and injury to the millions of Indian app developers and entrepreneurs.”
He added, “The ADIF has already approached the CCI in this regard, and we hope that the Delhi High Court will grant interim relief by staying the implementation of UCB until our complaint is heard.”
Tags: Google
