A group of over 30 Indian app developers has written to Google, requesting the tech giant to exercise restraint and not delist any apps from its Google Play Store until March 19. The developers made this request as the Supreme Court is expected to hear their petition on that date. The developers expressed their concern that any action taken by Google at this time would be extremely detrimental to them and the entire startup and app developer ecosystem. The plea comes after the Supreme Court refused to pass an interim order protecting internet firms, such as Matrimony and Shaadi.com, from being delisted on February 9, 2024, and listed the case for hearing in March.
The potential delisting of apps by Google could be a consequence of non-compliance with the company’s app billing policy. The Indian app developers highlighted their complete dependence on the Google Play Store and emphasized the negative impact that any action by Google could have on their businesses.
This recent development follows a ruling by a two-judge bench of the Madras High Court on January 19, which dismissed a plea by app developers, including Matrimony, challenging an earlier order by a single judge of the court in August 2023. The judge had deemed their pleas not maintainable and affirmed that the Competition Commission of India (CCI) had jurisdiction to adjudicate on the issue. The high court asserted that the CCI had the power to direct any enterprise guilty of abuse of a dominant position to discontinue such practices. Consequently, the order issued by the CCI would apply to all businesses, whereas a court order would only be applicable to the company challenging Google’s policy.
Initially, the high court provided an interim injunction to the companies, asking them to pay a reduced fee of four percent to Google for using its in-app payments system. This was in response to petitions filed by app developers who had challenged Google’s notice in August 2023, which required adoption of its new app billing policy or risk delisting from the Google Play Store. Google had announced its intention to enforce the Play billing policy in India in May 2023.
Last month, the app developers approached the Supreme Court to challenge the Madras High Court’s ruling. Although the court agreed to hear the case, it declined to pass any interim orders as the developers had already lost before the single judge and the division bench.
In their letter to Google, the app developers noted that the tech giant had previously voluntarily postponed the enforcement of its Google Play billing system and user choice billing on multiple occasions. They argued that Google would not suffer any irreparable harm if it refrained from taking immediate action against any app developers.
Google had suspended the enforcement of its in-app billing system in India in November 2022 in response to an antitrust order by the CCI. The order directed Google not to restrict app developers from utilizing third-party billing or payment processing services for app purchases or in-app billing on the Google Play Store.
Google also introduced a provision last year that allowed app developers to offer an alternate billing system for in-app purchases alongside Google Play’s own billing system. Under the alternate system, if a user pays through it, the transaction is still subject to a service fee, albeit at a reduced rate of four percent. This reduction reflects Google’s acknowledgment that its billing system was not used in these cases.
The app developers have claimed that Google’s updated payment policy is compliant with the CCI’s order. However, the CCI has expressed the need to investigate whether the policy is in full compliance with its earlier directives.
This ongoing conflict between Indian app developers and Google highlights the struggle between app developers and tech giants over app store policies and billing practices. The outcome of the Supreme Court hearing on March 19 will play a significant role in shaping the future of the app development ecosystem in India.
In conclusion, Indian app developers have requested Google to refrain from delisting their apps until the Supreme Court hears their petition on March 19. These developers argue that any action taken by Google would have a severely detrimental impact on their businesses and the entire startup and app developer ecosystem. The conflict arises from non-compliance with Google’s app billing policy, and the app developers maintain their reliance on the Google Play Store for their operations. The Supreme Court’s ruling on this matter will undoubtedly have far-reaching implications for the Indian app development industry.
