BusinessLine (Chennai)

NCLAT accepts appeals on CCI’s relief denial in Google Play case

Asks Google, CCI to file responses; fixes May 24 as final hearing date

- KR Srivats New Delhi

The National Company Law Appellate Tribunal (NCLAT) on Friday admitted the appeals of a clutch of start-ups, including Kuku FM and Shaadi.com, against CCI’s recent order denying them interim relief or protection against Google’s harmful conduct in the matter of User Choice Billing Policy (UCB).

The Appellate Tribunal directed Google and the Competitio­n Commission of India (CCI) to file their reply within a week and posted the case for a final hearing on May 24.

The appeals before the NCLAT were filed by Kuku FM, Shaadi.com and the Indian Broadcasti­ng and Digital Foundation (IBDF).

Although the app developers (start-ups) on Friday requested that a mention be made in the order that no precipitat­ive action should be taken in the interim, there was no finality on that front from the Appellate Tribunal.

In March, Google delisted over 100 apps from domestic developers such as Matrimony, Shaadi.com, Kuku FM, and Info Edge, for not complying with its app billing policy

With an oral understand­ing between the parties that no precipitat­ive action would be taken, start-ups can now breathe easy until May 24, which is the date of the final hearing.

REGULATORY COMPLIANCE

On March 10, the CCI rejected the start-ups’ interim relief applicatio­ns for complete restraint on Google from the collection of its fees under the tech giant’s updated payments policy.

This ruling came on the heels of the competitio­n watchdog ordering an investigat­ion

against Google on March 15 for excessive pricing on the Play Store. CCI had then held that the tech giant’s Users Choice Billing (UCB) payments policy was “prima facie” violative of the Competitio­n Act 2002.

The CCI prima facie found Google’s UCB to be an abuse of its dominant position and directed the Director General to conduct an investigat­ion.

The abusive conduct of Google included the service fees charged under UCB being excessive and disproport­ionate; the unfair pricing model of Google with app developers potentiall­y facing substantia­l costs; denial of market access; and service fees being arbitrary and discrimina­tory, among others.

In March 2024, Google delisted over 100 apps from domestic developers such as Matrimony, Shaadi.com, Kuku FM, and Info Edge (Naukri, 99acres, and Jeevansath­i), for not complying with Google’s app billing policy.

However, a week later, the tech giant temporaril­y reinstated them on the Play Store in the wake of government interventi­on. Google had, in 2023, introduced the UCB system in India as part of its e orts to comply with the CCI’s October 25, 2022, antitrust order. The UCB policy allowed developers to o er an alternativ­e billing system for in-app purchases besides Google Play’s billing system.

Transactio­ns under UCB attracted a maximum service fee of 26 per cent, which is a 4 percentage point reduction from the earlier rate of 30 per cent.

 ?? REUTERS ?? COMPLIANCE CHECK.
REUTERS COMPLIANCE CHECK.

Newspapers in English

Newspapers from India