India’s Supreme Court handed Alphabet Inc.’s Google a temporary victory by halting a legal challenge from education technology company Testbook Edu Solutions over app store billing policies. The apex court now must decide whether such disputes belong with civil courts or specialized regulators under the Competition Act and Payment and Settlement Systems Act.
The stay order, issued by Justices JB Pardiwala and R Mahadevan, freezes a June 11 Madras High Court ruling that allowed Testbook’s civil suit to proceed. Google had appealed after the high court rejected the company’s dismissal application.
Testbook, which operates more than 700 educational apps for government exam preparation, sued Google in July 2023 over policies requiring developers to use Google’s billing system and pay service fees of 15-30 percent. The edutech company argued the requirements were an arbitrary unilateral contract amendment that could reduce its revenue by up to 26 percent.
The legal battle reflects broader global tensions over app store economics, with regulators from Washington to Brussels scrutinizing fees and restrictions imposed by Apple Inc. and Google on developers. In India, the case has attracted attention from hundreds of startups and developers who could be affected by the outcome.
The Madras High Court in June rejected Google’s dismissal request, finding that Testbook’s claims primarily involved contract law and “tortious interference” rather than competition law violations. This ruling prompted Google’s successful Supreme Court appeal for a stay.
The case comes as global scrutiny of big tech practices intensifies around app store fees and market dominance. India, with its massive smartphone user base and thriving startup ecosystem, has become a key battleground for such disputes.
Google is represented by senior advocates Harish Salve and Sajan Poovayya, while Testbook is represented by advocate Abir Roy from Sarvada Legal.
