Google Vs Startups: Google withdraws plea against order on CCI probe into billing system

Google withdraws appeal in Delhi HC

Tech giant Google, on December 7, withdrew its appeal against the order of a single judge of the Delhi High Court asking the Competition Commission of India (CCI) to hear applications moved by Indian startups against Google's user choice billing system.

Senior advocate Sajan Poovayya, who appeared for Google, told the court that the order was passed by a single judge when the CCI did not have the quorum to hear the plea. The CCI, however, now has the quorum and has been hearing the plea by startups, he noted. Poovayya further told the court that while Google wishes to withdraw the appeal, they wish the keep the questions of law open.

Lawyer Akanksha Kaul, who appeared for the CCI, told the court that the regulator has no objections to the withdrawal. The court accordingly permitted Google to withdraw its appeal.

In May 2023, CCI said that it needs to inquire into tech giant Google's new users’ choice billing policy and check whether the company has complied with its October 2022 order asking the tech major not to restrict app developers from using third-party billing system. CCI order said "otes that app developers have been allowed the option of an alternative billing system only in respect of in-app purchases, however, CCI's order was applicable for paid apps also."

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.

The 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.

The petition sought a directive to the 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. It also sought a stay on Google's implementation of the UCB till the investigation was over.

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