With just few days to go before Google’s new User Choice Billing (UCB) policy goes live in India on April 26, the domestic start-ups’ ongoing fight against tech giant on its new payment policy implementation has reached a crescendo.
Two Chief Executives of popular digital businesses tweeted that Courts and Prime Minister’s Office need to take “serious” note of Google’s move in forcing app developers to continue to pay up to 26 per cent commission even if the user were to opt to make payment through third party billing solutions and how this act reflects the arrival of the Digital East India Company here (in India).
Also read: Explainer: Why Indian start-ups are up in arms against Google’s new in-app billing system
Anupam Mittal, Founder and CEO of People Group, tweeted: “Received a call from @Google today mandating their payments for Indian developers in continued violation & disregard of @CCI_India orders & Indian laws. Neo-colonialism at its worst! Hope the media, Courts & @PMOIndia are taking note.. the Digital East India Co is here”.
Deepak Shenoy, Founder and CEO Capitalmind, tweeted: ”The Courts should note this seriously. Google is forcing app developers to continue to pay up to 26 per cent commissions even if the pay through other billing solutions. The Courts have said onto this, but Google continues. India needs alternative app stores, preinstalled on phones”.
Shenoy also tweeted that the point here is to reduce the monopoly of one player in a market like Android, which has been a lower cost alternative so far to the closed Apple ecosystem.
India should also force decoupling play store, Google apps and pre-installation requirements from Android, Shenoy’s tweet added.
Anti-competitive conduct
The latest start-up CEO outburst against Google’s alleged anti-competitive conduct in the mobile applications market comes at a time when Delhi High Court had this week reserved its order in a digital start-up filed case. The Delhi High Court is expected to rule on whether CCI can invoke doctrine of necessity to adjudicate the complaints filed by the Alliance of Digital India Foundation (ADIF) against the tech giant for its anti-competitive conduct in Google Play Store policies.
This is also interesting as the Centre is on the verge of zeroing on a new Competition Commission Chairman and once the appointment is made, the Commission will have requisite quorum to adjudicate anti trust related complaints.
“Whichever way things unfold next week, it would have great bearing on the digital ecosystem of the country”, said a competition law expert.
UCB system
It maybe recalled Google has already announced intent to implement UCB system in India from April 26 this year wherein developers would be allowed to use third party billing system besides the Google Play Billing System. Domestic Start-ups are opposed to UCB in current form and allege that Google is looking to through UCB push a payment policy that is in violation of the spirit of CCI order.
Domestic start-ups want Google to put UCB on hold as they contend that tech giant charging a nearly 30 per cent service fee (basically commission) on app developers will prove to be a significant blow to Indian startup ecosystem.
Domestic start-ups also want Indian lawmakers to take a leaf out of South Korea’s book and introduce legislative measures (like that of South Korea) to protect consumers and safeguard the application ecosystem from the Big Tech’s monopolistic dominance.