Google's Play Store Drama: Disney's India Streaming Platform Safe For Now, But With A 4% In-App Charge

This story was first published on the Benzinga India portal.

Alphabet Inc-owned (NASDAQ: GOOG) (NASDAQ: GOOGL) Google has clarified that an Indian court’s recent directive preventing the removal of Disney’s local streaming service, Disney+ Hotstar, from the Play Store, is only temporary. Until the conclusion of the legal proceedings, Google will impose a temporary 4% fee on in-app purchases.

What Happened? Earlier this week, the Madras High Court issued a ruling prohibiting Google from removing Disney+ Hotstar from its app store. The court also directed Novi Digital, the company behind the streaming service, to pay a 4% commission to Google for in-app purchases.

Novi Digital, one of 15 companies to contest Google Play Store’s new billing system, had approached the High Court on Monday. Other challengers include Matrimony.com, People Interactive, Info Edge India, and more.

See also: Mukesh Ambani Derails Disney’s India Efforts? US Giant Said To Explore Star Sale After IPL Loss

Why It Matters Disney’s lawsuit marks the most prominent challenge so far against Google’s new “service fee” policy in India. This policy imposes a fee of 11-26% on in-app payments.

It was implemented after an antitrust ruling compelled Google to lower its original fee of 15-30% and accept third-party payments. Critics argue that this new fee system is just a disguised version of the earlier policy.

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