Unacademy, Kuku FM, Truly Madly Move Madras HC To Challenge Google’s Billing Policy

There seems to be no sign of relief for tech giant Google, as more and more Indian tech companies and startups are moving to high court to challenge the former’s billing policy. 

After the likes of Shaadi.com and Matrimony.com, new age startups such as Kuku FM, Unacademy, Truly Madly, and QuackQuack have moved to the Madras HC to challenge the recent Google’s Notice which sought these startups to either adopt the company’s (Google) billing policy or risk being removed from the Play Store, ET reported. 

Since the last couple of weeks, Google has been sending such notice via emails to all digital startups.

According to Inc42 sources , the Madras HC will hear the matter on June 8, 2023. Inc42 has learnt that around a dozen or more Indian tech companies and startups will challenge Google’s notice in the coming ten days.

Inc42 has reviewed one such notice received by an Indian startup. The notice reads, “Your app uses a non-Google Play billing system to accept payment for access to in-app features or services, including any app functionality, digital content or goods (“collectively “in-app purchases”).”  

“Your app may be removed from or distribution limited to Google Play if you do not resolve this issue by June 15, 2023,” the notice further added. 

Inc42 has reached out to Google, Unacademy, and Kuku FM for a statement. The story will be updated, once we hear from them. 

The fresh development has come almost a couple of weeks after Madras HC temporarily barred Google from delisting Matrimony.com’s app on its play store from June 1, 2023. 

In an order issued on April 24, the HC granted an interim injunction to the matrimonial platform and restrained Google from removing the app for non-compliance of its new user choice billing system. 

The entire point of contention is about Google’s user-choice billing system (UCB), through which Google will charge 11-26% commission on in-app purchases made by users of the app. 

Several companies have indicated that this commission would nearly cut their profits in half, as they conduct business with narrow profit margins in India. 

“They (Google) justify it saying that its investment in android and google play were funded in part through the service fee (commission). But then why are other apps like Amazon, Uber etc not subjected to this 30% tax. Why this discrimination?” questioned Snehil Khanor, founder of dating app Truly Madly. 

Initially, Google had proposed that Google Play Billing System (GPBS) as the sole in-app purchase billing option, would allow Google to charge a commission of 15-30% from the app developers. 

However, in October 2022, India’s antitrust watchdog CCI directed Google to not restrict app developers from using any third-party billing or payment processing services to purchase apps or for in-app billing on Google Play. CCI has even slapped a penalty of INR 1,337.76 Cr on tech giant Google for its anti-competitive practices.

In April, ahead of Google implementing the UCBS, policy think tank Alliance of Digital India Foundation (ADIF) has requested CCI to look into the ‘abusive dominance practices’ of Google on an urgent basis. As the body feared 11-26% service fee for in-app purchases will be a death knell for the Indian startup ecosystem.

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