cci-orders-probe-into-google-s-user-choice-billing-system-citing-potential-violations-of-competition-law

CCI orders probe into Google's user choice billing system, citing potential violations of competition law

Google pulled more than 100 apps from a set of 10 developers in India late last month after the Indian firms had “persistently not complied with its billing policies.” Google later restored the apps, but the firms will have to comply with the Play Store billing policies. The Indian developers had reached the CCI to investigate the matter.

- New Delhi - UPDATED: March 16, 2024, 04:27 PM - 2 min read

CCI orders probe into Google's user choice billing system, citing potential violations of competition law

CCI orders probe into Google's user choice billing system

Following a recent standoff between Indian startups and Google, the Competition Commission of India (CCI) has ordered an investigation into the tech giant’s contentious user choice billing system. The CCI's directive, issued on Thursday (March 15), comes after finding Google prima facie in violation of various sections of the competition law.

The antitrust watchdog has instructed its director general to conduct a thorough investigation and submit a detailed report within two months. The probe will focus on Google's alleged violations of Section 4(2)(a), 4(2)(b), and 4(2)(c) of the Competition Act.

The CCI's order is a response to three separate cases filed against Google. These cases were brought forth by People Interactive India (the parent company of Shaadi.com), Mebigo Labs (the parent company of Kuku FM), and industry bodies Indian Broadcasting and Digital Foundation (IBDF) and Indian Digital Media Industry Foundation (IDMIF).

All three parties accused Google of breaching Section 4 of the Competition Act, citing concerns over the commission rates charged to app developers. Google allegedly imposes fees ranging from 11% to 26% even on transactions processed through alternate billing systems.

Startups argue that these high service fees limit their ability to invest in app development, potentially leading to closures and denying market access to smaller developers. They contend that such operational costs hinder innovation and growth within the Indian app ecosystem.