MADRAS HIGH COURT
Crescere Technologies Private Limited – Appellant
Versus
Alphabet Inc – Respondent
OA 489 2023
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O.A.No.489 of 2023 in C.S.(Comm. Div.)No.129 of 2023
O.A.No.495 of 2023 in C.S.(Comm. Div.)No.130 of 2023
O.A.No.494 of 2023 in C.S.(Comm. Div.)No.131 of 2023
O.A.No.502 of 2023 in C.S.(Comm. Div.)No.132 of 2023
O.A.No.501 of 2023 in C.S.(Comm. Div.)No.133 of 2023
S.SOUNTHAR, J.
These applications have been filed by the applicants/plaintiffs seeking
injunction restraining the respondents from removing/delisting the mobile
applications (mobile apps) owned and operated by the applicant in Google
Play Store for their refusal or failure to accept or subscribe to the Google
payments in terms of Service-Seller (IN) posted on 02.06.2022, Payment
Policies, Policies relating to service fees, terms etc.
2. According to the applicants/plaintiffs, they are engaged in online
business. The applicants' apps are listed in the Google Play Store app pre-
loaded in mobile phone operating system android owned and operated by
the respondents. The applicants entered into a Developer Distribution
Agreement with 3rd respondent for listing of applicant's App in Google
Play store.
https://www.mhc.tn.gov.in/judis
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3. The 7th respondent is a company incorporated under the laws of
India and it operates as an online ''Payment Aggregator” facilitates
e-commerce sites and merchants to accept various payment instruments
from customers for completion of payment obligations without a need for
merchants to create a separate payment integration system of their own.
4. According to the applicants, around the year 2020, the respondents
herein made the use of Google Play Billing System “GPBS” mandatory and
exclusive for processing payments for downloading paid Apps, In-App
Purchases.
5. It is also asserted by the applicants that on the basis of subsequent
Investigation Report, the Competition Commission of India by order dated
25.10.2022 directed the respondents not to restrict app developers from
using any third party billing/payment processing services, either for in-app
purchases or for purchasing apps. The respondents were also directed not to
discriminate or otherwise take any adverse measures against such apps
using third party billing/payment process service in any manner.
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6. It was also asserted by the applicants that the respondents instead
of complying with the orders passed by the Competition Commission of
India in it's letter and spirit, in order to circumvent the same, permitted the
app developers in India to use “Alternative Billing System/User Choice
Billing” along side and in addition to the GPBS. In effect, integrating of
“GPBS” by app developers was made mandatory.
7. The applicants also asserted in the affidavit that as per the payment
policy of the respondents they proposed to charge service fee at the rate of
15% for the first $1M (USD) revenue earned by the app developer every
year. For the revenue earned in excess of $1M(USD), the service fee
proposed by the respondents is at 30%. It is also stated that in cases where
app developers offer alternative billing system in addition to Google Play
Billing System for transaction in India, the service fee for such transaction
using the Alternative Billing System is equal to the transaction via Google
Play's Billing System reduced by 4%. In other words, even if customers
make payment for app purchase or In-app purchase by utilizing Alternative
Billing System, the respondents proposed to charge 11% or 26% as service
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charge, depending on revenue generated. It is stated by the applicants that
when customers make payment by using Alternative Billing System levy of
service fee by the respondents at the rate of 11% or 26% depending on the
size of revenue generated by app developers in a year, without doing any
service with regard to the payment, is on the face of it, unconscionable.
8. The learned Senior Counsel for the applicants by ta
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