HC dismisses Indian startups plea against Google's billing policy

The Madras High Court has dismissed 14 pleas filed by Indian startups against Google's app billing policy. The court ruled that the matter falls under the jurisdiction of the Competition Commission of India (CCI) and that the startups should approach the CCI for relief.

The startups had filed the petitions in April 2023, challenging Google's new billing policy, which requires all apps on the Google Play Store to use Google's in-app billing system. The startups argued that the policy is anti-competitive and that it will hurt their businesses.

Google argued that the policy is necessary to protect users and that it is in line with the Indian government's regulations on digital payments. The company also said that it is willing to work with the startups to address their concerns.

The CCI is currently investigating Google's app billing policy. The outcome of the investigation could have a significant impact on the Indian app ecosystem.

The 14 startups that had their pleas dismissed by the Madras High Court are:

The two remaining pleas against Google's app billing policy are still pending in the Madras High Court. These pleas were filed by Disney+ Hotstar and Testbook.

According to the High Court, since the startups alleging abuse of dominant position by Google, the CCI has jurisdiction to adjudicate on the same. The high court held that CCI is empowered to direct any enterprise guilty of abuse of dominant position to discontinue such practices, hence  any order passed by CCI under such circumstances would be applicable to all the businesses. However, in case of the present proceedings, such an order will be made applicable only to the company which has challenged Google's policy.

The court however rejected Google's contention that the cases should be filed in California. The court noted that "Competition Act enacted by Indian legislature with the sole aim of preventing practices having adverse effect on competition will be of no use (if such a request is entertained). The preamble to Competition Act reads that it is an Act to ensure freedom of trade carried on by participants in Indian market. Freedom of trade is a fundamental right available to Indian Citizens under Article 19 of the Constitution of India."

It remains to be seen whether the CCI will find Google's app billing policy to be anti-competitive. If the CCI does find the policy to be anti-competitive, it could order Google to change the policy or it could impose a fine on Google.