Startups Form Task Force To Challenge Google On Billing Policies

In an unprecedented industry move, several Indian companies and startups have collaborated to form a 40-member task force aimed at addressing concerns with Google, focusing specifically on the Google Play Billing System (GPBS).

According to informed sources cited by an ET report, the task force has been constituted under the aegis of the Internet and Mobile Association of India (IAMAI) and has several prominent startup founders as members. All members of IAMAI have been approached to gauge their interest in joining this task force.

Interestingly, Google also has a representative included in the task force formed by the startups.

This group has been established to determine the approach towards Google Play, while the Supreme Court concurrently hears cross-appeals lodged by the Competition Commission of India (CCI) and Google, relating to the antitrust regulator’s ruling against the tech giant.

“Google too will make a presentation (to the task force) after which they (task force members) will decide what course of action is to be taken — be it impleading in court or coming out with a statement,” a person close to the developments told ET. The person added that startups may also consider other legal options against Google.

Before implementing the user choice billing system in India a year ago after much pushback from the industry and regulators alike, Google used the Google Play Billing System. Under the system, Google mandates that all in-app purchases go through its payment gateway, charging a 30% commission on such purchases. 

The constitution of this task force is being viewed as a step to protect the interests of Indian companies. The change in stance from the IAMAI has occurred ever since the polls from earlier this year elected Dream11’s Harsh Jain as the chairperson and knocked Big Tech out of the governing council of the industry body.

IAMAI has also been batting for Indian startups on net neutrality, as the telecom sector continues to argue in favour of a revenue-sharing model between startups and telcos. IAMAI added that such revenue-sharing agreements could pile up costs that would eventually be passed on to the customers, thereby raising the cost of internet usage.