Indian Broadcasting and Digital Foundation (IBDF), Indian Digital Media Industry Foundation, People Interactive India, which operates Shaadi.com, and Mebigo Labs, which operates Kuku FM, have submitted petitions to NCLAT against the Play Store billing policy.
During the proceedings, lawyers representing the app developers asked the bench to issue an order ordering the status quo to be maintained until the next hearing, even though Google did not remove them from the Play Store for not accepting the policy terms.
They urged the appeals court to ask Google to make such a commitment.
Google’s lawyer refused to give an undertaking, but assured NCLAT that he would do so only at the next hearing.
In this case, the NCLAT bench, comprising Justice Yogesh Khanna and Justice Naresh Salecha, said that the app makers can approach the appellate tribunal for an urgent hearing during the holidays if any adversarial steps are taken.
The petitioners are challenging the order passed by the Competition Commission of India (CCI), which on March 20, 2024, refused to grant a ephemeral exemption from the Play Store billing rules and stop Google from collecting fees. On March 20, the CCI dismissed four petitions by Indian app makers filed against Google Play’s fresh Play Store billing policy, which mandates charging fees ranging from 11 to 26 percent on in-app payments.
The CCI’s decision was challenged by app makers before NCLAT.
Producers of Indian applications argued before the CCI that the Google Play Store payment rules are anti-competitive.
However, the CCI in its order has clearly stated that nothing in this order shall amount to a final expression of opinion on the merits of the matter and the Director General will conduct the inquiry without being in any way dependent on the observations made herein.
“The Commission is of the opinion that the whistleblowers did not meet the criteria necessary for the grant of interim relief, as proposed by the Supreme Court.
“The informants have not been able to produce any prima facie higher ground that would guarantee the positive direction expected by the informants at the interim stage,” the CCI said in its order.
The petitions asked the regulator to stop Google from charging any fees for transactions involving paid downloads or in-app purchases offering digital products/services.
The order was issued after the Competition Commission of India (CCI) on March 15 ordered an inquiry against Google for alleged discriminatory practices in relation to the pricing policy of the Play Store after finding a prima facie violation of competition law.
The CCI further found that the tech giant’s Users Choice Billing (UCB) payment policy “prima facie” violates the Competition Act, 2002.
