Indian Startups Challenge Google’s New In-App Billing System in Court

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A group of Indian startups, represented by the Alliance of Digital India Foundation (ADIF), who have asked a court to suspend Google’s new in-app billing fee system in India until the country’s antitrust regulator investigates the U.S. tech giant for non-compliance with its directives.

According to the startups, Google’s new system still charges them a high service fee despite a directive in October 2020 that allowed the use of third-party billing services for in-app payments. The ADIF filed a complaint with India’s antitrust regulator last month, but the antitrust body is yet to hear the complaint promptly, even though Google’s implementation date of the User Choice Billing system (UCB) is approaching on April 26.

The ADIF has filed a 744-page document with the Delhi High Court, asking it to keep the implementation of Google’s UCB system on hold until the antitrust regulator hears its complaint. The court is likely to hear the plea later this week. Google declined to comment, while the CCI did not respond.

This is not the first time Google has faced criticism from Indian startups over what they claim are unfair business restrictions. In October 2020, the Competition Commission of India fined Google $112 million and directed it to stop forcing developers to use its proprietary in-app payment system, labeling it an abuse of Google’s dominant market position.

Google has challenged the antitrust ruling and denied any wrongdoing. The company claims that its new service fee system supports investments in the Google Play app store and the Android mobile operating system, ensuring that it distributes it for free, and covers developer tools and analytic services. However, 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%. They claim that the new system is merely another version of Google’s earlier system, cloaked with a new name.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Sarthak Luthra
Sarthak Luthra
Hey, there! I am the tech guy. I get things running around here and I post sometimes. ~ naam toh suna hi hoga, ab kaam bhi dekhlo :-)

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Indian Startups Challenge Google’s New In-App Billing System in Court

A group of Indian startups, represented by the Alliance of Digital India Foundation (ADIF), who have asked a court to suspend Google’s new in-app billing fee system in India until the country’s antitrust regulator investigates the U.S. tech giant for non-compliance with its directives.

According to the startups, Google’s new system still charges them a high service fee despite a directive in October 2020 that allowed the use of third-party billing services for in-app payments. The ADIF filed a complaint with India’s antitrust regulator last month, but the antitrust body is yet to hear the complaint promptly, even though Google’s implementation date of the User Choice Billing system (UCB) is approaching on April 26.

The ADIF has filed a 744-page document with the Delhi High Court, asking it to keep the implementation of Google’s UCB system on hold until the antitrust regulator hears its complaint. The court is likely to hear the plea later this week. Google declined to comment, while the CCI did not respond.

This is not the first time Google has faced criticism from Indian startups over what they claim are unfair business restrictions. In October 2020, the Competition Commission of India fined Google $112 million and directed it to stop forcing developers to use its proprietary in-app payment system, labeling it an abuse of Google’s dominant market position.

Google has challenged the antitrust ruling and denied any wrongdoing. The company claims that its new service fee system supports investments in the Google Play app store and the Android mobile operating system, ensuring that it distributes it for free, and covers developer tools and analytic services. However, 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%. They claim that the new system is merely another version of Google’s earlier system, cloaked with a new name.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Sarthak Luthra
Sarthak Luthra
Hey, there! I am the tech guy. I get things running around here and I post sometimes. ~ naam toh suna hi hoga, ab kaam bhi dekhlo :-)

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