No respite for Google; HC rejects plea against billing policy lawsuit

Chennai: In a setback to
Google India
Pvt Ltd and Google India Digital Services Pvt Ltd,
Madras high court
dismissed their request to reject a plaint moved by Textbook Edu Solutions Pvt Ltd challenging Google's new user choice billing policy.
The policy required all app developers to use its Google Play Billing System (GPBS) for all transactions, including paid app downloads and in-app purchases.
The developers were charged a commission between 13% and 15%.
Though the high court dismissed 13 such suits moved against Google in the past, Justice Senthilkumar Ramamoorthy refused to reject the suit moved by Textbook Edu on the ground that it does not relate to the superior bargaining position of Google but to the bilateral contracts between the parties.
Rejecting the contention of Google that the issue falls under the Competition Commission of India (CCI), the court said, "…in the present suit, the plaintiff has only requested relief in relation to the specific bilateral contracts between the parties.
Such in personam disputes cannot be adjudicated by the CCI."
As to the argument of Google that the plaint does not disclose a cause of action, the court said, "While deciding whether a plaint discloses a cause of action, it is unnecessary to examine whether the plaintiff would be in a position to establish all elements of the cause of action so as to obtain the relief sought in the suit."
It is sufficient if the averments in the plaint disclose a cause of action and the sustainability thereof is not germane at this stage, the judge added.
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