Indian Startup Asks Court To Postpone Google's In-App Fee System Until Cartel Investigation Completes

JAKARTA - A number of Indian startups have asked the court to suspend Google's new in-app billing cost system until the country's antitrust agency investigates allegations of non-compliance from the US company against antitrust orders issued in October 2020. This can be seen in the legal documents that have been published.

The Alliance of Digital India Foundation (ADIF) last month asked Indian antitrust regulators to investigate Google over the development of a new system that startups consider still charging high service costs, although last October, antitrust regulators ordered Google to allow the use of third-party billing services for in-app payments.

In a legal document published on April 10 at the Delhi High Court, ADIF argues that antitrust agencies have not heard of their complaints quickly, while the date for implementing the billing system called the User Choice Billing (UCB) from Google on April 26 is getting closer.

The 744-page legal document asked the court to "delay the implementation of UCB from Google" until CCI heard the complaint.

The court is likely to consider the request this weekend. CCI did not respond, while Google declined to comment.

This request marks the latest dispute between Google and competing startups who have repeatedly criticized the US company for what it considers unfair business restrictions.

In October 2020, India's Competition Commission sentenced Google to 112 million US dollars (Rp1.67 trillion) and said the company should stop forcing developers to use Google's in-app payment system, calling it Google's dominant market position abuse.

Google denies any form of error and challenges the antitrust decision. Google says its new service cost system supports investing in Google Play app stores and Android mobile operating systems, ensures that distribution is free, and includes development tools and analytical services for developers.

However, Indian startups argue that Google's UCB system still imposes an "service fee" of 11-26%, compared to previous in-app payment systems that cost 15-30%. This new system was "packed as another version" of Google's previous system, according to a legal document filed by ADIF.