The Madras High Court recently dismissed 14 petitions filed by various startup companies, including Matrimony.com, Alt digital media, Verve mobile, and others, challenging Google’s new user choice billing system. However, two petitions filed by Disney+ Hotstar and Testbook are still pending a hearing.
Justice S Sounthar, while dismissing the 14 petitions, stated that the matter fell under the purview of the Competition Commission of India (CCI), which provides a much broader remedy compared to a civil court. The Court cited Section 61 of the Competition Act, which prohibits civil courts from hearing cases within the Commission’s jurisdiction.
Nevertheless, the Court rejected Google’s request to have the petitioner firms litigate in California, where Google’s headquarters are located.
Before the change, Google had mandated that all app developers use the Google Play Billing System (GPBS) for all transactions, including paid app downloads and in-app purchases. This system entailed a commission of 15 to 30 percent charged to app developers for the services provided.
Google’s new billing system now offers users an “alternative billing” option alongside GPBS. This allows app developers to utilize third-party billing systems for a service fee ranging from 11 to 26 percent.
During the court proceedings, Matrimony and other app developers opposed this new levy.
