Startups form 40-member task force to take on Google Play Billing System

Google will soon make a presentation before the task force and it will then decide the further course of action

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Forty Indian startups and companies have united to form a task force to challenge Google, specifically its Google Play Billing System (GPBS), according to A Friday report by The Economic Times (ET). The task force has been established under the auspices of the Internet and Mobile Association of India (IAMAI).

Under GPBS, Google has mandated that all in-app purchases be processed through its payment gateway, and the company levies a 30 per cent commission on such transactions. However, following a ruling by the Competition Commission of India (CCI), Google replaced GPBS with a user-choice billing system in India.

An individual cited in the report mentioned that the task force may consider taking legal action against Google if necessary. Google is slated to present before the task force to inform its subsequent course of action. The ET report also noted that Google has a representative on the task force.

Last week, IAMAI proposed a resolution stating that its chairperson should hail from an Indian firm. The proposal also recommended that 50 per cent of the seats on the governing council be reserved for Indian companies.

The resolution further aims to implement procedural changes to enhance organisational transparency and internal coherence. It is proposed that any new council or committee formation should receive approval through a vote by the executive and governing council.

Earlier this week, the National Company Law Appellate Tribunal (NCLAT) announced it would commence hearing Google's appeal against CCI's imposition of a Rs 936.44 crore penalty on November 28. The penalty was for abusing its dominant market position in relation to Play Store policies.

On April 17 of this year, an NCLAT bench comprising Justice Rakesh Kumar and Alok Srivastava ordered that Google's appeal be listed before another bench, of which Justice Kumar was not a member.

On October 25, 2022, CCI imposed a fine of Rs 936.44 crore on Google for abusing its dominant position through its Play Store policies. The regulator also instructed Google to cease and desist from engaging in unfair business practices and to implement various measures to address anti-competitive issues within a specified timeline.

Google subsequently challenged this decision before the NCLAT, which serves as the appellate tribunal for orders passed by the fair trade regulator, CCI.

On January 11 this year, the NCLAT bench comprising Justice Kumar and Srivastava declined to grant interim relief to Google, who sought a stay on the penalty. The tribunal directed Google to deposit 10 per cent of the fine with its registry and scheduled the matter for hearing on April 17, 2023.