Google’s’s new in-app accounting system is challenged in court by Indian companies.

Aditya Kalra

NEW DELHI ( Reuters) A group of Indian startups have requested that a court suspend Alphabet Inc. Google’s’s new in-app billing fee system until the antitrust body of the nation looks into the U.S. company for alleged non-compliance with its directives.

In spite of an antitrust directive issued in October to allow use of third-party billing services for in-app payments, the Alliance of Digital India Foundation ( ADIF ) last month asked India’s’s Antitrust regulator to look into Google for developing a new system startups claim still charges them high service fees.

Even though Google’s’s April 26 implementation date of the so-called User Choice Billing system ( UCB ) is drawing near, ADIF contends in its April 10 filing at the Delhi High Court that the antitrust body has yet to hear its complaint promptly.

According to the 744-page filing, which was seen by Reuters, the court must” keep the execution of Google’s’s UCB in limbo” until CCI hears the problem.

Later this year, the petition is probably going to be heard in court. While Google declined input, the CCI did not respond.

The lawsuit is the most recent conflict between Google and rival companies, who have criticized the U.S. company for alleged unfair company restrictions on numerous occasions.

The Competition Commission of India fined Google$ 112 million in October and ordered the company to avoid pressuring designers to use its exclusive in-app payment system, claiming that Google was abusing its hegemonic market situation.

Google has disputed the competitive ruling and denied any wrongdoing. It claims that the new system tax system supports opportunities in the Google Play app store and the Android mobile operating system, ensuring that it is distributed for free and covers engineer tools and analytical products.

However, Indian startups contend that Google’s’s UCB system still charges a” service fee” of 11 – 26 % as opposed to the earlier in-app payment system, which charged between 15 and 30 %. According to the ADIF filing, the new system is” cloaked as another version” of Google’s’s previous system.

( Editing by Simon Cameron-Moore, reporting by Aditya Kalra)

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