CHENNAI: The Competition Commission of India (CCI) has ordered an investigation into Google’s Play Store billing policy over alleged misuse of market dominance.
The competition watchdog directs the Director General to investigate the matter and submit a report within a period of 60 days on receiving the order. CCI in its order stated Google introduced ‘User Choice Billing’ (UCB) system, it is offering an illusory choice for users to opt for an alternative billing option next to its existing Google Play’s billing system (GPBS).
Google announced that app developers offering digital content can offer alternative billing systems (ABS) alongside GPBS. “The updated policies of Google have been alleged to be discriminatory and unfair which skew and disrupt competition in the downstream app markets and continue to favour Google’s own apps and cement Google’s position in the payment processing market as well,” CCI noted.
“It has been alleged that Google imposes a service fee/commission model wherein it admittedly makes only 3% of the app developers bear the entire cost of 100% of the app developers on Google Play Store by charging them exorbitant service fee /commission without commensurate additional services.” While its earlier billing process was criticised as anti-competitive, In September 2022, Google introduced User Choice Billing pilot where certain changes were made to Play Store’s payment policies.
CCI said Google’s Play Store billing policies are in violation of Section 4 of the Act and allegedly impacting app developers, payment processors and users. The commission observed that Google has violated the provisions of Section 4(2)(a), 4(2)(b) and 4(2)(c). Google’s service fee is also alleged to be excessive as this commission / fee has no reasonable economic relation to the services provided by Google.
Google’s discriminatory policies and excessive fee is likely to cause an appreciable adverse effect on competition (AAEC) in other markets. The informants in the case are People Interactive India Private Limited (PIIPL), which operates brands such as Shaadi.com and Sangam.com, Mebigo Labs Private Limited (Mebigo), which owns Kuku FM and Indian Broadcasting and Digital Foundation (IBDF) and Indian Digital Media Industry Foundation (IDMIF).