Shark Tank India judge and Shaadi.com founder Anupam Mittal on Saturday hit out at Google for its new payment norms which, he said, violated the Competition Commission of India’s (CCI) October 2022 antitrust directives. This comes amid an ongoing legal tussle over Google’s new user choice billing system.
Taking to Twitter, Mittal wrote, "Received a call from Google today mandating their payments for Indian developers in continued violation and disregard of CCI orders and Indian laws. Neo-colonialism at its worst! Hope the media, courts, and the Prime Minister's office are taking note… the Digital East India Co is here."
On being asked by a Twitter user if he was referring to the 30 percent commission that Google demands, Anupam Mittal said, "amongst other things".
Speaking about the call with Google representatives, Mittal told Inc42 that he was warned that his company People Group would have to comply with the new policy by April 26 or its apps would be taken off the Play Store. People Group is the umbrella company that operates others like Shaadi.com, Makaan, and Mauj.
Mittal also said that complying with Google's rules when the Delhi High Court is already hearing an appeal against the new user choice billing system, would amount to being illegal.
"We will not give up the fight easily… It is fundamentally illegal in our interpretation and in the law’s interpretation and, according to the law of the land, they are asking us to do illegal activities," the Shark Tank India judge told Inc42. "They (Google) are saying that I am your overlord… and you have to listen to my instructions, not the court in your country, not the law in your country, not the institutions of your country.”
Read more: Google to allow app developers to offer third-party billing in India from April 26
As per Google's new policy, 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.
This means that developers will have to shell out a service fee to Google ranging from 6-26 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 10-30 percent service fee.
This was opposed by startups in India who united under Alliance of Digital India Foundation (ADIF). “Despite not using any service from Google, app developers will be forced to pay commissions to Google. The startup community agreed that Google's non-compliance will impact the Indian startup ecosystem negatively,” ADIF stated.
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