The Indian Digital Media Industry Foundation (IDMIF), an industry body representing some prominent streaming players in India has approached the CCI to challenge Google’s app store billing policy.
According to an Economic Times report, in the letter to CCIOTT Streaming Apps Approach CCI To Fight Against Google’s Play Store Commission—the IDMIF stated that Google’s commission fee is both unjustifiable and harmful, and that its policy could put an end to smaller OTT businesses and channels, and those “especially in the content curation business.”
This move comes just after Disney+ Hotstar app owner—Novi Digital Entertainment—approached the Madras High Court trying to stop Google from removing the app from its Google Play Store. Moreover, it is reportedly the first non-Indian streaming platform to have gone after challenging Google’s policies.
The IDMIF is representing the following OTT players in India: Disney+ Hotstar, Zee5, Voot, SonyLIV, Manorama Max, SunNXT and Discovery+.
“IDMIF approaching the CCI on this matter adds a lot of heft to our ongoing case that it is not just the smaller players who are hurting but also the larger players in the space that are going to take a hit,” Vinay Singhal, CEO of OTT startup, Stage was quoted as saying by ET.
In response, the CCI has asked IDMIF to submit evidence that supports its claim.
The Madras High Court also granted an interim injunction to Disney+Hotstar— directing the streaming platform to pay a lower commission of 4% to Google for using its in-app payment system.
Earlier, streaming platforms had to pay “15-30% under the previous Google Billing and Payments System (GBPS),” but under the ‘new user choice billing (UCB) system,’ this rate has been brought down by 4% to 11-26%.
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