Google is now under investigation by India’s competition watchdog, according to a regulatory order seen by Reuters on Friday. The investigation was launched in response to complaints filed by some companies alleging that the service fees charged by the US tech company for in-app payments violate a previous antitrust directive.
Match Group, which owns Tinder, along with various Indian startups, has urged the watchdog to look into GoogleRecently implemented User Choice Billing (UCB) system which they claim to be anti-competitive.
On Friday, the Competition Commission of India (CCI) issued a non-public order, saying that an investigation should be conducted with respect to Google’s in-app payment service fee following complaints from some companies. There has been no response from Google regarding this development.
Last October, the CCI fined Google $113 million, demanding that the tech giant allow third-party billing and end the practice of forcing developers to use its in-app payment system. Which charges commission ranging from 15 per cent to Rs. 30 percent.
After facing criticism, Google introduced User Choice Billing (UCB) System Which allows users to choose alternative payment methods alongside Google to purchase in-app digital content. However, some companies have filed complaints, claiming that the new system still imposes a significant “service fee” ranging from 11 percent to 26 percent.
According to Match Group and Alliance of Digital India Foundation, Google’s action of continuing to levy “service fee” ranging from 11 percent to 26 percent through its UCB system indicates non-compliance of the earlier Antitrust Directive, which mandates that Google refrain from enforcing any “unreasonable and disproportionate” terms and conditions.
The competition watchdog has requested that Google clarify specific provisions related to its in-app payment system before and after the introduction of the User Choice Billing (UCB) system, as well as to govern the sharing of user and app developer data. Provide information about policies to be followed. , Google has been given four weeks to respond to the order.
Google has maintained that the in-app payment service fee is necessary to support the investment google play app store and the Android mobile operating system, allowing them to be distributed for free while covering expenses related to developer tools and analytics services. The tech giant considers India as an important growth market; However, it faces additional regulatory hurdles, such as a recent setback that forced it to revise how it promotes its Android system.
(with inputs from Reuters)
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