Google billing policy case: NCLAT seeks response on Kuku FM, Shaadi, IBDF plea against CCI order

NCLAT seeks Google's response

The National Company Law Appellate Tribunal (NCLAT) on May 10 sought  response from tech giant Google on a bunch of appeals against the Competition Commission of India (CCI) refusal to a stay on the contentious Play Store billing policy.

The appellate tribunal has now listed the case for hearing on May 24.

The appeal at the NCLAT was filed by Kuku FM, Indian Broadcasting and Digital Foundation (IBDF) and Shaadi.com.

In a March 20 order, the fair trade watchdog stated that app makers have not been able to put up a case for the grant of interim relief over completely restraining Google from collecting its fees.

"The informants (app makers) have also not been able to demonstrate as to how the impugned conduct would result in irreparable harm that cannot be remedied through monetary compensation. The Commission is also not persuaded that balance of convenience lies in favour of the Informants," the CCI said in its order.

The CCI move left Google  free to delist the apps of Indian digital companies from Play Store if they do not comply with the company's payment policy.

Earlier in March, the CCI passed an order noting that the tech giant's User Choice Billing (UCB) system 'prima facie' violates the Competition Act, 2002.

The antitrust regulator also ordered the Director General (DG) to conduct an investigation, complete it and file a report regarding the same in 60 days.

Google introduced the User Choice Billing system in India in 2023 as part of the company's efforts to comply with the CCI's October 2022 antitrust order. It allowed developers to offer an alternate billing system for in-app purchases alongside Google Play’s own billing system.

If a user pays through the alternative billing system (also termed as user choice billing system), the transaction will still be subjected to a service fee, but at a 4 percent rate reduction.

A bunch of app developers, mostly based in India, objected to it as it violated the CCI's 2022 order which imposed Rs 936 crore penalty on the tech giant for abusing its dominant position in the play store eco system.

Google app delisting saga

In March 2024, Google delisted over 100 apps from developers such as Matrimony, Info Edge (which runs Naukri, 99acres, and Jeevansathi), Shaadi.com, and Kuku FM for not complying with the company's app billing policy for an extended period until March 1.

A week later, Google temporarily reinstated these apps on Play Store following a government intervention.

Moneycontrol reported on March 5 that a forum has been established between the tech giant and a few prominent Indian app developers including Matrimony, and Shaadi.com to come up with a long-term solution for the app billing issue within the next 120 days.

Google's action came after the Supreme Court refused to pass an interim order protecting these internet firms from being delisted from Google's Play Store on February 9, 2024. Although, it has agreed to hear the matter in the forthcoming future.

Earlier a single judge and a division bench of Madras High Court had rejected a plea by the app developers. They subsequently moved the apex court in appeal against the Madras HC's order.