Madras High Court Rejects Appeals by Startups Over Google's Billing Policy

Madras High Court Rejects Appeals by Startups Over Google's Billing Policy

On Friday, the division bench of the Madras High Court rejected the appeals filed by Indian startups challenging Google's app billing policy. Nevertheless, the Court has directed Google to refrain from delisting the mobile applications of these startups for three weeks.

The petitions by 14 companies, including matchmaking website Bharat Matrimony and ed-tech firm Unacademy, against Google's in-app billing policy were dismissed by the Madras High Court in August 2023. The Court stated that the issue falls within the ambit of the Competition Commission of India (CCI). In the aftermath of the division bench's rejection of their appeal, these startups now have the option to approach the Supreme Court.

The Court observed that the remedy provided by the Competition Act is more comprehensive compared to that available before a civil court. It stated, the order of the CCI is subject to challenge through an appeal before the National Company Law Appellate Tribunal.

In August, the interim order was issued in response to a plea filed by Matrimony.com challenging Google’s policy. The matchmaking company had sought to prevent Google from removing its app from the Play Store due to non-compliance with the said policy.

The CCI imposed a penalty of ₹936 crore on Google in October 2022 and directed the company not to hinder app developers from using third-party billing services. Additionally, Google was instructed not to enforce discriminatory conditions.

Before the High Court, Indian startups claimed that Google had implemented the User Choice Billing (UCB) system to bypass the CCI's directive. They petitioned the court to deem charges imposed under UCB as illegal.