New Delhi: A coalition of Indian startups is seeking an injunction from the Delhi High Court to suspend Google’s new in-app billing fee system until the country’s antitrust regulator investigates the US tech giant for allegedly failing to comply with its previous directives. The Alliance of Digital India Foundation (ADIF) argues that Google’s new User Choice Billing (UCB) system continues to charge startups high service fees, despite the Competition Commission of India’s directive in October to allow the use of third-party billing services for in-app payments. The ADIF had previously filed a complaint with the regulator, but it has yet to receive a response.
The legal filing, which runs to 744 pages, requests that the court halt the implementation of Google’s UCB system until the Competition Commission of India hears the complaint. The court is expected to consider the plea later this week. Google declined to comment, while the regulator did not respond. The dispute is the latest in a series of conflicts between Google and rival startups in India, who have repeatedly accused the company of imposing unfair business restrictions.
Last October, the Competition Commission of India imposed a fine of $112 million on Google, saying that it must stop forcing developers to use its proprietary in-app payment system, which it deemed an abuse of Google’s dominant market position. Google denied any wrongdoing and contested the antitrust ruling. The company maintains that its new service fee system supports investments in the Google Play app store and the Android mobile operating system, and helps it distribute them for free, while also covering developer tools and analytics 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, which charged a fee of 15-30%. The ADIF filing claimed that the new system is “cloaked as another version” of Google’s earlier system. As India’s startup ecosystem continues to expand, the regulatory environment is becoming increasingly challenging for multinational tech firms. With the ongoing antitrust investigation and the legal challenge from Indian startups, Google’s UCB system may face significant hurdles in India’s dynamic and fast-growing digital economy.
