Google User Choice Billing System: Startups Move NCLAT Against CCI Ruling
The system charges app developers a service fee of 11% to 26% for downloads of paid apps, in-app purchases made through Google Play.
Two Indian startups have moved an appeal in the National Company Law Appellate Tribunal against a ruling of the Competition Commission of India that declined to stay the user choice billing system and even left the tech giant free to delist the apps not complying with it.
The firms that have approached the NCLAT are Kuku FM and Shaadi.com. The Indian Broadcasting & Digital Foundation has also moved an appeal. The matter is likely to be taken up for further consideration on May 24.
The issue revolves around the tech major's new UCB system, which charges app developers a service fee of 11% to 26% for downloads of paid apps and in-app purchases made through Google Play. This system gives app developers the option to use a third-party billing system instead of Google's billing payment system.
This fee is seen as unreasonable by startups and led to conflicts with Google. Following this, the CCI issued an order that did not grant interim relief in the matter while investigations were ongoing.
In an order passed on March 20, the CCI said the startups failed to present sufficient evidence to support their request for immediate action. They could not demonstrate a strong enough case or show how the actions they complained about would cause irreparable harm that couldn't be fixed.
