Google is a monopoly in the digital market space and App Developers are majorly dependent on the Google Play store to distribute their Apps across the globe.
Abusing its monopolistic position, Google tried to make Google Play Billing System a mandatory and sole option for payments and imposed a fee of 15% / 30% depending upon the annual revenue, however, because of the timely intervention of the Competition Commission of India (CCI) such imposition of GPBS as the only option for App developers to get payments were held to be illegal by CCI. Proceedings for violation of remedies advised by CCI are pending before CCI pursuant to the direction given by Hon’ble Delhi High Court.
Matrimony.com Limited, India’s largest online match-making company, approached Madras High Court to protect its interest, against the Google group of companies and sought interim reliefs. The main contention of Matrimony.com was that the present payment policy of Google is in violation of applicable law and imposing an 11%/ 26% fee on the revenue will cause huge hardship and irreparable loss to all the App developers and such a levy is unconscionable and not sustainable. Madras High Court, after hearing the arguments of Matrimony.com was convinced that a prima facie case was made out and balance of convenience is in favour of Matrimony.com for grant of Interim Injunction against Google.
Speaking about the injunction order, Murugavel Janakiraman, CEO, of Matrimony.com Ltd said, it is a great relief and the fee structure proposed by Google is a death knell to Indian start-ups. Google is forcing app developers to agree to its payment policy of charging a service fee at the rate of 11% and 26% even with respect to the payments made by customers through its new users’ choice /alternate billing system without providing any services at all.
Google is trying to circumvent the Competition Commission of India’s (CCI) order which directed Google not to restrict app developers from using third-party billing or payment processing services, either for in-app purchases or for purchasing an app.
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Google forcing App Developers to use alternative billing systems or user choice billing along with its billing system and terming it as a new policy and charging App developers a ridiculously high 11%/26% on the revenue is unconscionable and not acceptable. We will continue to fight legally until Google stops its monopoly behaviour of taxing Indian startups.”
