Indian Startups Against Google Play Billing System
Google Play Billing System (GPBS) has become a possible threat to startups in India by levying a hefty 30%commission on in-app purchases. Nearly 40 startups have joined hands to oppose the mandate to purchase in-apps through the GP payment gateway.
The Internet and Mobile Association of India has approached 40 startups in court to seek legal assistance. The aim is to eliminate the commission or replace the GPBS with a more user-choice billing system and promote healthy competition rather than imposing a mandatory commission.
Google has received a recommendation from the Competition Commission of India (CCI) to implement a new billing system in India. This system would allow users to choose their preferred payment method. The recommendation came after the Madras High Court dismissed 14 out of 16 startup pleas regarding the Google application. The court stated that the issue falls under the jurisdiction of the CCI. As a result, the CCI has imposed penalties on Google for abusing its dominant position, levying unviable commissions, and disrupting the market ecosystem.
Furthermore, the CCI also held Google for tying up with mobile companies for a mandatory pre-installation of certain Google apps that can only be disabled but not uninstalled from mobile phones. Considering the fact, CCI penalized Google with Rs 936.44 crores. However, Google has challenged the decision and has presented itself to the National Company Law Appellate Tribunal (NCLAT) task force. Yet the hearing has been postponed to November 28th.
The CCI further recommended that Google not engage in anti-competition activities and avoid discrimination against third-party applications or processing service fees. “If the app developers do not comply with Google’s policy of using Google Play Store, they are not permitted to list their apps on the Play Store and, thus, would lose out on the vast pool of potential customers in the form of Android users.” CCI.
In defending itself, Google argued that the predator application could potentially threaten financial fraud, data theft, and other cyber risks. Google is responsible for the application in the Google Play app store and protects the same against malware. Furthermore, Google expressed the financial burden could fall on the Original Equipment Manufacturers (OEMs), leading to expensive consumer goods.
Additionally, the company declared it will allow smartphone vendors in India to license individual apps for pre-installation on their Android-powered devices. Consumers will also have the ability to change search engines and use third-party billing options for apps and game purchases on the Play Store.
Earlier this year, a famous television celebrity, Anupam Mittal, termed Google the ‘Digital East India Company.’
The case has been taking ebb and flow from time to time. Nevertheless, Google has been a secured mode of operations for many years, but not paving the way for the Indian startups violates and disregards the CCI.
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