The Delhi High Court, on Wednesday, reserved order in the plea filed by a clutch of digital start-ups — Alliance of Digital India Foundation (ADIF) — seeking direction to Google to keep its proposed User Choice Billing (UCB) system in abeyance till the CCI completes investigation of their complaint over the tech giant’s non-compliance with the competition watchdog’s ruling in the Google Play Store policy case.
Google has already announced intent to implement UCB system in India from April 26 this year, where developers would be allowed to use third-party billing system besides the Google Play Billing System. ADIF is opposed to UCB in current form and wants tech giant to put it on hold as it contends that Google charging a nearly 30 per cent service fee on app developers will prove to be a significant blow to Indian startup ecosystem.
A Single Judge of Delhi High Court Tushar Rao Gadela reserved the order after a marathon hearing of over two hours here on Wednesday. “Arguments heard, order reserved”, said Gadela on Wednesday, which was the second straight day of hearing by Delhi High Court on the ADIF plea matter.
ADIF had in its petition before Delhi High Court alleged that Google has tried to bypass the CCI order of October 25 last year by announcing the UCB system.
ADIF has petitioned Delhi High Court to direct CCI to invoke ‘doctrine of necessity’ to deal with the three applications filed before the Competition Watchdog by this think tank for digital Startups.
ADIF had in its applications alleged non-compliance by Google of CCI’s directions issued through its October 25 ruling of last year in the Google Play Store Policy case. CCI had then imposed penalty of ₹936 crore on Google for its anti-competitive conduct in the Google Play Store policies.
ADIF had also in its petition before Delhi High Court sought direction that Google’s proposed UCB system — to be implemented from April 26–be kept in abeyance till CCI completes investigation of ADIF’s complaint over Google’s non compliance with the competition watchdog’s ruling in the Google Play Store policy case.
On Wednesday, ADIF Counsel Abir Roy presented legal arguments to press for direction from Delhi High Court to CCI to invoke ‘doctrine of necessity’ to consider ADIF complaint against Google.
ADIF contended that CCI by invoking doctrine of necessity has started approving proposed M&As in the interest of the market and economy and similar standards and non-discriminatory approach should also be followed by CCI to adjudicate the applications alleging non-compliance of its anti trust orders.
However, Google companies, represented by Senior Advocates Sandeep Sethi and Sajjan Poovayya, opposed invoking of doctrine of necessity, stating that without quorum it is not possible. CCI, who was represented by Additional Solicitor General N Venkatraman, did not take a particular stand and said that CCI will go with whatever verdict is pronounced by the judge. The US-based Match Group also made an intervention supporting ADIF on the matter.
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Published on April 19, 2023
