CCI Probe Finds Google Unfairly Blocking Rival Payments On India Store
The findings come after a probe triggered by protests from developers, who’ve complained Google charges an unfairly high fee in return for using Android app stores and its proprietary payments service
New Delhi: After initial findings of an extensive investigation, the Competition Commission of India (CCI) has said Google’s billing system for app developers is “unfair and discriminatory”.
According to a report by Bloomberg, the CCI found Google discriminated against developers in its Play store billing policy and if found true, could pave the way for potential penalties in future.
The findings come after a month-long probe triggered by protests from several Indian developers, who’ve complained the US internet major charges an unfairly high fee in return for using Android app stores and its proprietary payments service.
Google’s parent Alphabet Inc. and Apple Inc. have come under pressure from regulators around the world who accuse the twin technological giants of forcing developers to use their payment systems, then taking an outsized cut of revenue.
According to the report, Google was forced to provide an alternative billing system after regulatory action in South Korea. Google said it was reducing app makers’ fees by 4 per cent.
In its preliminary report dated March 14, the Indian anti-trust regulator said, “Google is imposing unfair and discriminatory conditions in violation of regulations.”
“Google’s conduct is also resulting in denial of market access to competing UPI apps since the market for UPI enabled digital payment apps is multi-sided, and the network effects will lead to a situation where Google Pay’s competitors will be completely excluded from the market in the long run,” the CCI added.
The report said that over 200 start-up founders banded together to open discussions with the government to stop it from imposing a fee of as much as 30 per cent on smartphone app purchases, its standard levy around the world.
While Google delayed implementation of that rule after an outcry in late 2021, the tech industry remains determined to constrain the colossus. Google generally took a 30 per cent commission on most app store purchases and subscriptions, but lowered the fee in recent years to 15 per cent for media providers like Spotify.
In a statement, Google said, “We will continue to engage with the CCI and demonstrate that our practices benefit Indian consumers and developers, without in any way restricting competition.”
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