In a setback for several startups, the Madras High Court has dismissed their appeals against Google’s in-app payment billing policy on the Play Store mobile app marketplace. This marks the second dismissal by the court since August 2023, dealing another blow to the startups’ efforts to challenge the tech giant’s policies. While dismissing the appeals, the court has instructed Google not to delist the startups’ mobile applications for the next three weeks, offering a temporary reprieve.
This ruling follows a previous dismissal in August 2023 when the court rejected 14 out of 16 pleas filed by Indian startups against Google. The court had then noted that any order it passed would apply only to the parties challenging the policy, while directives from the Competition Commission of India (CCI) would be applicable to all concerned businesses.
According to a report by Moneycontrol, the affected companies have the option to approach the Supreme Court for further recourse in this matter. The dismissal comes after companies such as Matrimony, Shaadi.com, Unacademy, Kuku FM, TrulyMadly, QuackQuack, Aha, Stage, and Kutumb filed a petition following a judge’s declaration that their pleas against Google were ‘not maintainable’.
The ongoing debate over Google’s billing system gained momentum when the tech giant revised its commission rates to 11-26%, down from the previous range of 15-30%, after intervention by the CCI. In 2023, startups formed a 40-member task force, led by the Internet and Mobile Association of India (IAMAI), to address concerns with the Google Play Billing System (GPBS). The task force, which included a representative from Google, aimed to negotiate with the tech giant over its billing policies.
Anupam Mittal, founder and CEO of People Group, expressed his frustration by referring to Google as a ‘Digital East India Company.’ He likened Google’s billing policy to the historical taxation imposed by British rulers on Indian farmers during the colonial era.
