New Delhi: Insider-owner Match Group and Indian startups have asked the country’s competition body to probe Alphabet’s Google for alleged non-compliance of an antitrust directive by charging a high service fee for in-app payments, the filing shows. The filing by Match and Alliance of Digital India Foundation (ADIF) marks the latest tussle between Google and rival companies, which have repeatedly criticized the US company over what they call unfair business restrictions.
“Google’s policy change in charging service fees even on transactions processed by third-party payment processors … has harmful consequences for users and app developers,” the 15-page confidential March complaint by ADIF said.
Google, which declined to comment, previously said the service fee supports investment in the Google Play app store and the Android mobile operating system, ensures it distributes it for free, and provides developer tools and analytical tools. cover the services.
ADIF and the details of the match filing, which were reviewed by Reuters on Thursday, were not previously reported. ADIF, Match and CCI did not respond to requests for comment.
The Competition Commission of India (CCI) fined Google $113 million in October, saying it should allow the use of third-party billing and stop forcing developers to use its in-app payment system Who takes 15%-30% commission. ,
Google later decided to begin offering User Choice Billing (UCB) to allow for alternative payments alongside Google when purchasing in-app digital content, but ADIF said in its filing that this new system would be a “service”. charges”
“App developers have to pay 1%-3% to alternative payment service providers and 11%-26% to Google, which makes the entire ecosystem unsustainable,” ADIF said.
Match, in its March 21 filing, asked the CCI to direct Google not to collect or levy any commission or service charges through user choice billing, saying the system was “anti-competitive”. Google, which counts India as a key growth market, faces other regulatory challenges, including a blowback that forced it to change how it markets its Android system. In an order in October, the CCI said that Google abused its market position and by mandatorily imposing a proprietary payment system limited the scope of payment processors and app developers for technological development and innovation.
Google has challenged this in the Indian tribunal. ADIF, which represents Indian startups including digital payments firm Paytm and social media app ShareChat, alleged in its March complaint that Google was using the new service fee system to circumvent an antitrust directive that allowed it to Ordered not to impose “unreasonable and inconsistent” conditions.
“UCB’s policy is unfair and will result in unjust enrichment to Google,” the ADIF filing said.