Google’s OTT troubles in India just got added
Google‘s OTT troubles in India may have just multiplied. Indian Digital Media Industry Foundation (IDMIF), the industry body representing some of the major streaming players in India, has reportedly moved the Competition Commission of India (CCI) against Google’s app store billing policy.
According to a report in Economic Times, in a letter to the competition watchdog, IDMIF has termed the commission charged by Google Play Store as unjustified and said that it is an affected party in the matter. The letter further claims that Google’s practices could mean the end of business operation for smaller TV channels and OTT players, especially in the content curation business.
The move comes a day after Disney+ Hotstar streaming app owner Novi Digital Entertainment moved the Madras High Court in a bid to stop Google from removing the app from Play Store. Disney+ Hotstar is the first non-Indian OTT (over-the-top) platform to join the fight with Google over the Play Store billing. Other streaming apps seeking intervention include Disney+ Hotstar, Zee5, Voot, SonyLIV, Manorama Max, SunNXT and Discovery+. IDMIF is representing these OTT platforms in the court.
Google vs Disney-Hotstar battle
Earlier this week, the high court granted an interim injunction to Disney+Hotstar and directed the streaming platform to pay a lower 4% commission to Google for using its in-app payments system. In a statement on the issue, Google spokesperson said, “The order (for Disney+ Hotstar) 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.”
Industry sources also said that the court ordered Disney+ Hotstar to furnish monthly accounting information to facilitate Google’s collection of the interim fee in a timely manner.
The 4% fee
Under the previous Google Billing and Payments System (GBPS), developers were liable for commissions in the range of 15-30%. The new user choice billing (UCB) system has brought down the rate by 4% to 11-26% under the new regime.
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Google‘s OTT troubles in India may have just multiplied. Indian Digital Media Industry Foundation (IDMIF), the industry body representing some of the major streaming players in India, has reportedly moved the Competition Commission of India (CCI) against Google’s app store billing policy.
According to a report in Economic Times, in a letter to the competition watchdog, IDMIF has termed the commission charged by Google Play Store as unjustified and said that it is an affected party in the matter. The letter further claims that Google’s practices could mean the end of business operation for smaller TV channels and OTT players, especially in the content curation business.
The move comes a day after Disney+ Hotstar streaming app owner Novi Digital Entertainment moved the Madras High Court in a bid to stop Google from removing the app from Play Store. Disney+ Hotstar is the first non-Indian OTT (over-the-top) platform to join the fight with Google over the Play Store billing. Other streaming apps seeking intervention include Disney+ Hotstar, Zee5, Voot, SonyLIV, Manorama Max, SunNXT and Discovery+. IDMIF is representing these OTT platforms in the court.
Google vs Disney-Hotstar battle
Earlier this week, the high court granted an interim injunction to Disney+Hotstar and directed the streaming platform to pay a lower 4% commission to Google for using its in-app payments system. In a statement on the issue, Google spokesperson said, “The order (for Disney+ Hotstar) 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.”
Industry sources also said that the court ordered Disney+ Hotstar to furnish monthly accounting information to facilitate Google’s collection of the interim fee in a timely manner.
The 4% fee
Under the previous Google Billing and Payments System (GBPS), developers were liable for commissions in the range of 15-30%. The new user choice billing (UCB) system has brought down the rate by 4% to 11-26% under the new regime.
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end of article
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