Google appeals against single-judge Delhi HC order directing CCI to take up ADIF complaint

Google has filed an appeal in the Delhi High Court against a single-judge order directing the Competition Commission of India (CCI) to look into complaints filed by the Alliance of Digital India Foundation (ADIF), an industry body representing a group of Indian startups, alleging that Google’s user choice billing system (UCB) is anti-competitive.

Justice Tushar Rao Gedela on Monday ordered CCI to take up the complaints by April 26, the date from which the user choice billing system becomes effective. Meanwhile, the competition watchdog has called both Google and ADIF, and is expected to begin hearing the matter on Tuesday at 2.30pm.

Senior advocate Sandeep Sethi sought an urgent listing of Google’s appeal before a bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad, noting that the CCI lacked a quorum to consider ADIF’s applications. However, the Delhi High Court refused to list the matter for hearing today.

The ADIF complaint
ADIF, which represents Indian startups such as Paytm, Matrimony, MapmyIndia and TrulyMadly, had filed a plea with the court earlier this month seeking an urgent CCI review of Google’s new in-app purchase billing system.

It had alleged that Google was engaging in anticompetitive conduct by implementing the new policy, and that it was taking advantage of the CCI lacking a quorum to look into the industry body’s complaints.

Under the system proposed by Google, app developers need to pay a commission of 11-26% to the US-based tech giant.

ADIF approached the high court on April 11, alleging that the competition watchdog’s “inaction” on the tech company’s new billing system had resulted in Google engaging in antitrust conduct.

Data security issue
The startup body’s counsel had submitted to the court that in addition to app developers paying a higher commission to Google under the new policy, there was the matter of transaction data, where even the data of users who choose payment methods other than the Google Play billing system would have to be provided to Google.

The single-judge bench had completed the hearing in the case and reserved its judgement last Wednesday. The arguments made by the parties were primarily around whether it was within the ambit of the law for the CCI to take the complaints up, given that the commission currently has only two members and is, therefore, lacking a quorum.

Under the Competition Act, CCI meetings require at least three members to be present to achieve a quorum.

In a 38-page verdict, Justice Gedela said “there is no impediment, legal or otherwise, in directing the CCI to take up the applications” under the Competition Act.