Disney recently took legal action against Google’s in-app billing system, joining a growing number of companies questioning its fairness. Specifically, Disney, the operator of Disney+ Hotstar in India, claimed that Google threatened to remove the Hotstar app unless it complied with the new payment system. However, the court ruled in favor of Google, requiring Disney to pay a 4% service fee each month. Google has now responded to the court order, stating that the fee is temporary and that it will comply until the order is overturned or modified.
Understanding the Case
Disney is not the first to challenge Google’s in-app billing fee system in India. Last year, the Competition Commission of India (CCI) stated that Google must allow the use of third-party billing and stop forcing developers to utilize its payment system. In response, Google introduced the User Choice Billing (UCB) system with service fees ranging from 11% to 26%, lower than the previous 15%-30% rate. However, a startup disagreed with this new system, claiming that it violated an earlier antitrust directive. As a result, an antitrust investigation was launched in May.
Google justifies its service fees by explaining that they support investments in the Google Play app store and Android operating system. The company also emphasizes that the fees only apply to developers who sell digital goods or services within their apps, affecting only 3% of developers in India.
Furthermore, Google argues that these charges enable developers to provide a secure experience to their users and reach a large global user base.
Understanding the Case
Disney is not the first to challenge Google’s in-app billing fee system in India. Last year, the Competition Commission of India (CCI) stated that Google must allow the use of third-party billing and stop forcing developers to utilize its payment system. In response, Google introduced the User Choice Billing (UCB) system with service fees ranging from 11% to 26%, lower than the previous 15%-30% rate. However, a startup disagreed with this new system, claiming that it violated an earlier antitrust directive. As a result, an antitrust investigation was launched in May.
Google justifies its service fees by explaining that they support investments in the Google Play app store and Android operating system. The company also emphasizes that the fees only apply to developers who sell digital goods or services within their apps, affecting only 3% of developers in India.
Furthermore, Google argues that these charges enable developers to provide a secure experience to their users and reach a large global user base.
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Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
