Google announced on Wednesday that the Indian court’s ruling, which mandates a 4% in-app payment fee for Disney’s streaming service in the country, is a temporary measure until the court proceedings are concluded. This development marks the latest and most prominent challenge to Google’s policy of imposing a “service fee” ranging from 11% to 26% on in-app payments. The introduction of this service charge came after an antitrust directive that denounced Google’s previous fee of 15% to 30% and compelled the company to permit third-party payments.
The Indian court’s decision specifies that Google must only charge a 4% fee for in-app purchases made on Disney+ Hotstar and cannot remove Disney’s app from its Indian app store. This represents a significant blow to Google’s payments business model. In response to the court’s ruling, Google stated, “The order is interim in nature, and the temporary 4% figure is simply a fee that the developer will pay to Google each month while these legal proceedings play out.” Google is obligated to adhere to the court’s directives until they are overturned or modified.
Disney, the operator of the popular Disney+ Hotstar streaming app in India, has taken legal action against Google’s new billing system in Tamil Nadu state’s court. Disney’s lawyers argued that Google threatened to remove the Hotstar app unless it complied with the new payments system.
Moving on, in a separate context, we explore the possibility of the Nothing Phone 2 serving as the successor to the Phone 1 or if the two devices will coexist. We delve into the details surrounding the recently launched handset in the latest episode of Orbital, the Gadgets 360 podcast. You can access Orbital on platforms such as Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music, and other podcast platforms.
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