Indian startups request Google to not delist apps from Play Store until March 19

App developers said any step taken by Google will be "extremely detrimental" to them and all the participants of this ecosystem consisting of startups and app developers.

A group of over 30 Indian app developers have written to Google, requesting the tech giant to "exercise restraint" and not take any "precipitation action" to delist apps from Google Play Store until March 19 when the Supreme Court is expected to hear their petition.

This development comes after the Supreme Court refused to pass an interim order protecting internet firms such as Matrimony from being delisted from Google's Play Store on February 9, 2024 and listed the case for hearing on March 19.

This step could pave the way for Google to remove apps that don't comply with its app billing policy.

In the letter, the app developers said any step taken by Google will be "extremely detrimental" to them and all the participants of this ecosystem consisting of startups and app developers.

"As you would know, we are completely dependent on Google Play Store," they said.

On January 19, a two-judge bench of the Madras High Court dismissed a plea by app developers including Matrimony that had challenged the order of a single judge of the high court in August 2023.

The judge had ruled their pleas as “not maintainable”, saying the Competition Commission of India (CCI) had the jurisdiction to adjudicate on the issue.

The high court held that the CCI was empowered to direct any enterprise guilty of abuse of dominant position to discontinue such practices, hence an order passed by CCI would apply to all the businesses. Whereas, a court order will be made applicable only to the company that has challenged Google's policy.

In early 2023, the high court provided an interim injunction to these companies, asking them to pay a lower four percent fee to Google for using its in-app payments system.

This was after petitioners had approached the state high court, challenging Google's notice to either adopt its new app billing policy or face delisting from the app marketplace. Google had stated in May 2023 that it will start enforcing Play billing policy in India.

Last month, the app developers approached the Supreme Court against Madras High Court's order. The apex court agreed to hear the matter but refused to pass any interim orders as these developers had lost both before the single judge and the division bench.

In the letter to Google, the app developers noted that the tech major had earlier voluntarily extended its enforcement of Google Play Billing System and User Choice Billing multiple times and chose not to enforce. "Therefore, no irreparable harm or injury would be suffered by Google, in case it does not take any precipitative actions against any developers," it said.

Google had paused the enforcement of its in-app billing system in India in November 2022, following the CCI's antitrust order that directed the company not to restrict app developers from using third-party billing or payment processing services to purchase apps or for in-app billing on Google Play.

Last year, it started allowing app 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, which the firm believes "fairly reflect that Google Play’s billing system has not been used".

This effectively means that developers will have to shell out a service fee to Google ranging from 11-26 percent for in-app purchases and subscriptions, depending on the type of app/service and the annual revenue it generates on Google Play, as compared to the regular 15-30 percent service fee.

In May 2023, Google had claimed that its updated payment policy is compliant with CCI's order. In the same month, CCI stated that it needed to inquire whether the policy complies with the antitrust watchdog's earlier directives.