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Temporary Court Order: Google Responds to In-App Fee for Disney App in India

Google responded to an Indian court's order that it must charge a lower 4% fee for in-app payments on Disney's streaming service, Disney+ Hotstar, in India. The court's directive is part of an ongoing legal battle initiated by Disney against Google's policy of imposing an "service fee" ranging from 11% to 26% on in-app purchases. This fee structure was introduced by Google following an antitrust ruling that required the tech giant to allow third-party payments, replacing their earlier 15-30% fee.

The Indian court's decision is seen as a significant challenge to Google's payments business model. However, Google clarified that the order is temporary, and the 4% fee is only applicable during the duration of the ongoing legal proceedings. The company stated that it would comply with the court's directives until there is an overturn or modification.

Disney's lawyers argued in court that Google was using the threat of removing the Hotstar app from its India app store to enforce its new billing system. The case, taking place in Tamil Nadu state, represents a high-profile conflict between two major companies in the digital services industry.

As of now, Google will have to adhere to the 4% fee requirement until a final resolution is reached in the legal battle, indicating that the situation may evolve depending on the court's decisions.

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