Indian entrepreneurs sue Google’s new in-app pricing mechanism. In a legal brief, a group of Indian entrepreneurs requested a court to block Alphabet Inc (GOOGL.O) Google’s new in-app charging charge structure until the country’s antitrust regulator examines the U.S. business for alleged non-compliance.
Last month, the Alliance of Digital India Foundation (ADIF) petitioned India’s antitrust authority to probe Google’s new method, which startups allege still charges them a hefty service fee despite an October antitrust ruling to allow third-party billing systems for in-app purchases.
ADIF claims in its April 10 Delhi High Court filing that the antitrust authority has yet to consider its case despite Google’s April 26 User Choice Billing (UCB) implementation date.
The 744-page document, obtained by Reuters, requests the court “hold the execution of Google’s Agreement in abeyance” until CCI considers the case.
The plea may be heard later this week. Google denied comment, but the CCI did not.
Google and competitor startups have often challenged the U.S. corporation for unfair commercial restrictions.
In October, the Competition Commission of India penalized Google $112 million for compelling developers to adopt its in-app payment mechanism.
Google disputes the antitrust verdict. The new service charge scheme supports the Google Play app store and Android mobile operating system investments, free distribution, developer tools, and analytic services.
Indian firms say Google’s UCB system still charges a “service fee” of 11-26%, comparable to the former in-app payment system’s 15-30%. The ADIF petition said Google’s new technology is “cloaked as another version.”
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