CCI summons Google after direction from Delhi High Court to hear plea against its billing policy

CCI

The Competition Commission of India (CCI) has summoned Google and Indian startups on April 25 to hear the latter's plea against the tech giant's new in-app user choice billing policy, sources close to the development told Moneycontrol.

CCI is also likely to ask Google to show how it has complied with its October 2022 order asking the tech giant to not restrict app developers from using any third-party billing or payment processing services to purchase apps or for in-app billing on Google Play besides a range of corrective measures to modify the company's app payment policies.

On April 24, in a plea by a bunch of Indian startups, Delhi High Court asked the CCI to hear applications moved against Google's user choice billing system.

Alliance of Digital India Foundation (ADIF), a think tank, moved court against the competition regulator and the search engine giant, seeking CCI to urgently investigate Google's user choice billing system (UCB) as it violates the anti-trust watchdog's October 25, 2022 order. Google is to introduce the new billing system on April 26.

The petition sought a directive to CCI to invoke the 'doctrine of necessity' (extraordinary actions by administrative authority) to investigate Google's alleged violation of the regulator's guidelines and pass an order as CCI does not have the quorum to adjudicate anti-trust cases.

ADIF has urged CCI to stay Google's new billing policy. Under the new policy, if a user pays through the alternative billing system (also termed user choice billing system), the transaction will still be subjected to a service fee, but at a 4 percent rate reduction.

In October 2022,  CCI levied a penalty of  Rs 936.44 crore on Google for abusing its dominant position with regard to its Play Store policies. Google is currently pursuing its appeal in NCLAT against CCI's penalty.