Madras HC grants injunction against Google in suit filed by Matrimony.com

The Madras High Court has granted interim relief to online match making company Matrimony by passing an order of injunction against Google from de-listing or removing the former’s app from its Play Store for non-compliance of payment policy.

Terming the service fee of 11%-26% intended to be imposed by Google under User Choice Billing as “unconscionable” the Madras HC on April 25, 2023, granted interim relief to Matrimony.com.

Matrimony had approached Madras High Court against Google group of companies seeking interim relief in a case which concerned Google trying to make its Play Billing System mandatory and sole option for payments and imposing a fee depending upon annual revenue.

However, because of the intervention of Competition Commission of India (CCI) such imposition of GPBS as only option for app developers to get payments were held to be illegal by it. 

Proceedings for violation of remedies advised by CCI are pending before it pursuant to the direction given by Delhi HC.

The main contention of the online match making company was that the present payment policy of Google is in violation of applicable law and imposing 11%/26% fee on the revenue will cause ‘huge hardship and irreparable loss’ to all the app developers and such a levy is ‘unconscionable and not sustainable’.

Madras HC, after hearing the arguments of Matrimony.com, was convinced that prima facie case was made out and balance of convenience lies in favour of the petitioner.

Murugavel Janakiraman, CEO, Matrimony.com, said, “It is a great relief and the fee structure proposed by Google is a death knell to Indian start-ups. Google is forcing app developers to agree to its payment policy of charging a service fee at the rate of 11% and 26% even with respect to the payments made by customers through its new users’ choice/alternate billing system without providing any services at all. Google is trying to circumvent the Competition Commission of India’s (CCI) order which directed Google not to restrict app developers from using third party billing or payment processing services, either for in-app purchases or for purchasing an app. Google forcing App developers to use alternative billing system or user choice billing along with its billing system and terming it as a new policy and charging app developers ridiculously high 11%/26% on the revenue is unconscionable and not acceptable. We will continue to fight legally until Google stops its monopoly behaviour of taxing Indian start-ups.”

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