Madras High Court Dismisses Majority of Petitions Challenging Google's New Billing System
In a recent ruling, the Madras High Court has rejected 14 out of 16 petitions filed by various startup companies, including Matrimony.com, Alt digital media, and Verve mobile, contesting Google's recently introduced user choice billing system. The case, formally known as Matrimony.com ltd v. Alphabet Inc and others, saw Justice S Sounthar presiding over the dismissal of these petitions. However, two petitions lodged by Disney+ Hotstar and Testbook remain pending before the court.
Justice Sounthar grounded the dismissal of the petitions in the belief that the matter falls within the jurisdiction of the Competition Commission of India (CCI), emphasizing that the remedies available under the Competition Act hold a broader scope than those provided by a civil court. The court invoked Section 61 of the Competition Act, which explicitly prevents civil courts from entertaining cases that the Commission is empowered to address.
Remarkably, the court declined Google's motion that advocated for the petitioner firms to pursue their grievances before the appropriate authorities in California, where Google's headquarters are situated.
Previously, Google mandated all app developers to exclusively utilize its Google Play Billing System (GPBS) for all financial transactions related to paid app downloads and in-app purchases. Developers were subjected to a commission ranging from 15 to 30 percent for these services. Google's revised billing system introduces the option for users to select an "alternative billing" mechanism apart from GPBS. This modification allows app developers to incorporate third-party billing systems, albeit with an associated service fee ranging from 11 to 26 percent.
The central point of contention, vehemently opposed by Matrimony and numerous other app developers, centers around this service fee imposed by Google's new billing approach.
TAGS: Madras High Court petitions startup companies Google billing system user choice Matrimony.com Alt digital media Verve mobile Disney+ Hotstar Testbook Competition Commission of India (CCI) Competition Act civil court California Google Play Billing System (GPBS) in-app purchases service fee.
