new Delhi: Following the initial findings of a comprehensive investigation, the Competition Commission of India (CCI) has said that Google’s billing system for app developers is “unfair and discriminatory”.
According to a Bloomberg report, the CCI found that Google discriminated against developers in its Play Store billing policy and, if found correct, could lead to potential penalties in the future.
The findings come after a month-long investigation triggered by protests from several Indian developers, who have complained that the US internet major charges unreasonably high fees in exchange for using the Android app store and its proprietary payments service.
Google’s parent company Alphabet Inc. and Apple Inc. have come under pressure from regulators around the world, who accuse the two tech giants of forcing developers to use their payment systems, then drastically cutting revenue.
According to the report, Google was forced to provide an alternative billing system following regulatory action in South Korea. Google said it is slashing app makers’ fees by 4 percent.
In its preliminary report dated March 14, the Indian anti-trust regulator said, “Google is imposing unfair and discriminatory terms in violation of the rules.”
“Google’s conduct has resulted in the denial of market access to competing UPI apps because the market for UPI enabled digital payment apps is multi-party, and the network effect will lead to a situation where Google Pay’s competitors are completely removed from the market. Will be kept out for a long time,” the CCI said.
The report said more than 200 start-up founders worked together to begin talks with the government to stop the government from charging up to 30 percent on smartphone app purchases, which exceeds its standard levy across the globe. Is.
While Google delayed implementation of that rule in late 2021 after an uproar, the tech industry is determined to disrupt the colossus. Google typically charges a 30 percent commission on most App Store purchases and subscriptions, but in recent years has reduced the fee to 15 percent for media providers like Spotify.
In a statement, Google said, “We will continue to engage with CCI and demonstrate that our practices benefit Indian consumers and developers, without restricting competition.”