The Madras High Court has dismissed appeals from the Indian companies challenging Google LLC's new billing policy.
However, the court granted a three-week extension to an earlier interim protection against delisting. After this period, the protection would no longer apply. The detailed order is yet to be released.
Earlier, the startups were instructed to provide Google with a report detailing the total number of downloads they had accumulated. Additionally, they were directed to pay a 4% commission to Google on the gross revenue generated through the Play Store in that particular month.
The court had specifically ordered Google not to delist any companies from the Play Store that had filed a lawsuit against it.
In August 2023, a single judge rejected 14 petitions filed by Indian startups opposing Google's new user-choice billing system.
The single judge had observed that the matter falls under the jurisdiction of the Competition Commission of India, which offers a more comprehensive remedy than a civil court. The judge cited Section 61 of the Competition Act, which prohibits civil courts from hearing cases within the Commission's authority.
The current ruling is the result of an appeal against the single-judge order that dismissed the startups' pleas.
The core issue centers around Google's user choice billing system, allowing users to pay through various channels with service fees ranging from 11% to 26%. If startups choose to stay under Google's billing system, they face service fees ranging from 15% to 30%.
Startups involved in the appeal include Bharat Matrimony, Shaadi.com, Unacademy, Kuku FM, TrulyMadly, QuackQuack, Aha, Stage, and Kutumb, among others.
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