Credit: Inside the MagicUPDATE:
Google has responded (per Reuters) to the Indian court’s ruling for the Walt Disney Company, saying that the 4% service charge it has been limited to is temporary, signaling that the mega-company does intend to combat it.
Google’s statement reads, “The order 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.”
The Walt Disney Company is getting into yet another gigantic legal battle, this time against one of the biggest tech companies in the world: Google.
While Disney is one of the most famous media companies in the world, encompassing both its own storied brand along with Marvel Studios, Pixar Animation Studio, Lucasfilm, and National Geographic, Google is up there on par with tech giants like Apple Inc., Amazon, Microsoft, and Meta/Facebook.
When it comes to facing off against a huge opponent in a court of law, Disney could hardly risk more than coming up against Google.
Related: Ron DeSantis Tries to Dismiss Disney Lawsuit, Says He’s “Immune”
Disney vs Google in India
The core of this particular Disney legal battle concerns Google Play, the company’s online app store.
Basically, Google has been getting in hot water in India (one of the world’s biggest consumer markets) over its payments model, which demanded staggeringly high “service fees” from the companies that make the apps it provides; at one point, Google was charging as high as 30%.
However, an Indian antitrust directive ruled against that policy and also required Google to allow third-party payment systems, essentially preventing it from forcing app developers to only use its system, which then it could charge exorbitant percentages for.
Disney Scores an Early Victory Over Google Play
Now (per Reuters), an Indian court has delivered the Walt Disney Company a striking victory over Google Play. Disney had already claimed in court that Google Play was threatening to remove the popular Disney+ Hotstar streaming app if it did not comply with its payment system.
The court has ruled that Google Play cannot remove Disney+ Hotstar and, moreover, can only charge the company a 4% service, a fraction of what it wanted. Google and its parent company, Alphabet Inc have not yet made a public statement about the ruling.
Google Will Likely Appeal the Decision
While both Disney and Google are global companies, India is a hugely important consumer base for any corporation. It seems all but certain that Google will attempt to appeal the decision in some way, lest it lose untold billions of dollars in service charges from Google Play.
Google has already been fined $113 million in India for monopolistic practices; that is a whole lot of money to pay even before it begins counting how much less 4% is than 30%.
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Disney Has Multiple Active Lawsuits
Of course, the Walt Disney Company has a lot of legal irons in the fire, even without going head-to-head with Google. It is currently embroiled in a drawn-out legal case against Florida Governor Ron DeSantis and recently lost a huge decision in California regarding worker pay that may cost the company billions.
Not a great time for another lawsuit, even if Disney seems to be ahead on this one so far.
Is Disney in too many legal cases right now? Gavel in your decision in the comments below!