40 Indian startups come together against 30% commission imposed by Google Play Billing System

Google Play Billing System: In a concerted effort, 40 Indian startups and companies have joined forces to challenge Google, specifically focusing on its Google Play Billing System (GPBS), according to media reports on Friday. This collective initiative has been brought together under the aegis of the Internet and Mobile Association of India (IAMAI).

Google's GPBS mandates that all in-app purchases be processed exclusively through its payment gateway, with the tech giant imposing a hefty 30 per cent commission on these transactions. However, a recent ruling by the Competition Commission of India (CCI) prompted Google to replace GPBS with a user-choice billing system in India.

According to the report, the task force is considering potential legal action against Google, signalling the seriousness of their concerns. Google is expected to present before the task force to elucidate its course of action. Interestingly, the media reports highlighted that Google holds a representative position within the task force.

Indianisation of IAMAI

Recent developments within IAMAI reflect a push for more Indian influence within the organisation. Last week, IAMAI proposed a resolution suggesting that the chairperson should hail from an Indian firm. Additionally, the proposal recommended reserving 50 per cent of governing council seats for Indian companies.

This resolution aims to drive procedural changes for heightened transparency and internal coherence within IAMAI. It suggests that any formation of a new council or committee should undergo approval through a vote by the executive and governing council.

In another legal development, the National Company Law Appellate Tribunal (NCLAT) announced it would begin hearing Google's appeal against CCI's imposition of a Rs 936.44 crore penalty on November 28. This penalty was imposed on Google for abusing its dominant market position concerning Play Store policies.