CCI's decision to deny interim relief in the Google billing case deals a major setback to Indian internet firms

SUMMARY

The Competition Commission of India (CCI) has denied interim relief sought by startups against Google's imposition of fees on developers under its updated payments policy. CCI ruled that the complainants failed to meet the criteria for relief outlined by the Supreme Court. This decision comes amid a four-year dispute between startups and Google over alleged anti-competitive practices. Additionally, Google's recent removal and subsequent restoration of apps from its marketplace further highlight the tensions between tech giants and startups in India.

In a significant setback for startups, the Competition Commission of India (CCI) has dismissed interim relief applications aimed at restraining Google from imposing fees or commissions on developers under its updated payments policy.

The Hindu reported the CCI's decision, citing the commission's order, which stated that the complainants failed to meet the necessary criteria for interim relief, as per guidelines set by the Supreme Court. The complainants, including People Interactive India Private Limited, Indian Broadcasting and Digital Foundation (IBDF), Indian Digital Media Industry Foundation (IDMIF), and Mebigo Labs Private Limited, did not fulfill the prerequisites outlined by the court.

Three separate entities filed applications urging the commission to prevent Google from charging fees on transactions related to paid downloads or in-app purchases for apps offering digital products or services. However, the CCI found no demonstration of irreparable harm that couldn't be remedied through monetary compensation, nor did it perceive the balance of convenience in favor of the complainants.

This development follows the CCI's recent investigation order against Google for allegedly charging high fees on its Play Store. The watchdog had earlier held Google's Users Choice Billing (UCB) payments policy as "prima facie" violative of the Competition Act 2002.

The dispute between startups and Google has been ongoing for four years, revolving around allegations of anti-competitive behavior driven by Google's dominance in the Android ecosystem and the Google Play App Store.

In a related incident on March 1, Google removed hundreds of apps from its marketplace, including those owned by companies like Info Edge, People Interactive, and Matrimony, due to violations of its billing policies. Following government intervention, Google reinstated these apps on the Play Store, highlighting the tense relationship between tech giants and startups in India.

Inreach Keywords: Competition Commission of India (CCI), Google, Interim Relief, Startups, Billing Dispute, Payments Policy, Supreme Court, Competition Act 2002, Play Store, Android Ecosystem, Anti-competitive Behavior, Users Choice Billing (UCB), App Marketplace.