CCI orders probe into Google over app billing policy
CCI’s investigative arm has been mandated to complete the probe in 60 days
The Competition Commission of India on Friday ordered a probe into Google, over its recent tussle with Indian startups around de-listing of apps. Reportedly, the antitrust body said that the US-based tech giant implemented its policies in a "discriminatory manner".
CCI has directed its Director General (Investigation) to investigate Google. Its investigative arm has been mandated to complete the probe within a 60-day timeframe.
Indian startups like Shaadi.com, Matrimony.com, Naukri.com and others have been at odds with Google for months over the fee it charges for in-app payments. Earlier this month, Google delisted these apps from its play store citing ‘non-adherence’ to its app billing policies.
According to CCI, Google stands accused of imposing unjust terms and discriminatory actions within its Play Store platform, allegedly violating several provisions outlined in India's anti-trust regulations. The commission asserts that Google has been drawing arbitrary distinctions, potentially disadvantageous to certain developers on its platform.
A Google spokesperson told exchange4media that the company is examining CCI's order initiating the investigation. “The CCI has previously examined our service fee in detail between 2020 and 2022 and found no illegality. However, we take our commitment to comply with local laws and regulations in India seriously and will cooperate with the process in every way,” the person added.
The delisting of apps was largely condemned by the government, which was then followed by a meeting at ADIF, chaired by Rajeev Chandrasekhar. Snehil Khanor, Co-Founder & CEO of TrulyMadly, voiced concerns over the financial burden imposed by Google's charges, citing figures of up to 26% of app revenue.
“In the spirit of cooperation, we are temporarily reinstating the apps of the developers with appeals pending in the Supreme Court. Google maintains its right to implement and enforce its business model, as established in various courts. We will invoice our full applicable services fees in the interim and are extending payment timelines for these companies. We look forward to a collaborative effort to find solutions that respect the needs of all parties,” a Google spokesperson had said after the discussions at ADIF.
The founders shared that their businesses had seen a tangible impact, with a reported 40% drop in operations observed shortly after their apps were temporarily delisted from the Play Store.
It should be noted that this is a separate investigation from the previous order issued by the CCI on Google Play in Oct 2022, in which the CCI mandated the inclusion of alternate billing systems along with Google Play Billing System, which Google complied with. This order is based on a new complaint by People Interactive and some other developers specifically about the service fee levied on Google Play.
