The Competition Commission of India (CCI) has taken action against Google’s billing system on its Play Store platform, ordering a detailed investigation into the matter on Friday, March 15, 2024.
This directive by the antitrust body comes after concerns were raised by Indian companies regarding Google‘s billing policies.
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The Competition Commission of India (CCI) has taken action against Google’s billing system on its Play Store platform, ordering a detailed investigation into the matter on Friday, March 15, 2024.
This directive by the antitrust body comes after concerns were raised by Indian companies regarding Google’s billing policies.
In its order issued on Friday, the CCI expressed its initial view that Google may have violated certain sections of the Competition Act, prompting the need for a thorough investigation.
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The commission has instructed the Director General (DG) to conduct the probe and submit a report within 60 days.
“In view of the foregoing, the Commission is of the prima facie view that Google has violated the provisions of Section 4(2)(a), 4(2)(b) and 4(2)(c) of the Act, as elaborated supra which warrants detailed investigation. Accordingly, the Commission directs the Director General (‘DG’) to cause an investigation to be made into the matter under the provisions of Section 26(1) of the Act. The Commission also directs the DG to complete the investigation and submit a consolidated investigation report within a period of 60 days from the date of receipt of this order,” said the order.
The decision follows Google’s recent removal of several apps from its Play Store, belonging to ten Indian developers, citing non-compliance with billing policies.
Among the delisted apps were popular ones like Bharat Matrimony, Shaadi.com, Truly Madly, and others. These apps were reinstated after the developers complied with Google’s policies.
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A plea was filed by a group of startups, alleging that Google’s actions violated a previous CCI directive, which instructed the company not to restrict app developers from using third-party billing services.
Google’s Play Store imposes a fee ranging from 15 per cent to 30 per cent for in-app purchases and subscriptions made through its billing system. Developers opting for third-party billing options pay a commission of 11 per cent to 26 per cent, offering a slight reduction in service fees.
In its detailed order, the regulator questioned Google’s justification for the service fee, particularly regarding the services provided to app developers. The CCI noted discrepancies, especially concerning the exemption given to certain types of apps from the service fee.
The CCI pointed out concerns over the apparent arbitrariness and discrimination in the application of service fees, especially considering the large size of physical delivery apps that do not contribute to Google’s investment in the Play Store.
