Chennai: In a recent development, the Madras High Court has granted an interim injunction against Google in a suit filed by Matrimony.com. The court has termed the service fee of 11 to 26 percent intended to be imposed by Google under User Choice Billing as “Unconscionable.” This order restrains Google from delisting or removing the apps of Matrimony.com from Google Play Store for non-compliance of payment policy.
Google is a monopoly in the digital market space, and all app developers are majorly dependent on Google Play store to distribute their apps across the globe. Abusing its monopolistic position, Google reportedly tried to make Google Play Billing System (GPBS) mandatory and the sole option for payments and imposed a fee of 15% or 30% depending upon the annual revenue.
However, timely intervention by Competition Commission of India (CCI) held the imposition of GPBS as the only option for app developers to get payments illegal. Proceedings for violation of remedies advised by CCI are pending before CCI pursuant to the direction given by the Delhi High Court. Matrimony.com Limited, India’s largest online matchmaking company, approached the Madras High Court against Google group of companies and sought for interim reliefs. The main contention of Matrimony.com was that the present payment policy of Google is in violation of applicable law, and imposing an 11 to 26% fee on the revenue will cause huge hardship and irreparable loss to all app developers, and such a levy is unconscionable and not sustainable.
The Madras High Court, after hearing the arguments of Matrimony.com, was convinced that a prima facie case was made out, and balance of convenience is in favour of Matrimony.com for grant of Interim Injunction against Google. Murugavel Janakiraman, CEO, Matrimony.com Ltd., said, “It is a great relief, and the fee structure proposed by Google is a death knell to Indian start-ups. Google is forcing app developers to agree to its payment policy of charging a service fee at the rate of 11 to 26% even with respect to the payments made by customers through its new users’ choice or alternate billing system without providing any services at all.”
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