The Competition Commission of India (CCI) will investigate Google following a conflict with Indian companies regarding its in-app billing policy.
On Friday, the CCI stated that Google was applying its policies in a “discriminatory fashion”.
Competition Commission of India
India’s competition watchdog initiated an investigation into Alphabet Inc’s Google on Friday amid a continuing conflict with domestic startups regarding its in-app billing mechanism. The regulatory body stated that the American tech giant applied its policies in a manner deemed “discriminatory”.
For months, Indian startups have been in disagreement with Google over the fees associated with in-app transactions.
Tensions heightened earlier this month when Google delisted over 100 Indian apps from its app store due to billing-related violations, a move later reversed following intervention by the Indian government.
At the behest of the startups, the Competition Commission of India (CCI) was urged to examine the issue. On Friday, the watchdog issued an order for an investigation, asserting that “Google is enforcing its policies in a discriminatory manner”.
The CCI further instructed its investigative unit to conclude the inquiry within a span of 60 days.
“We are reviewing the CCI’s directive to launch the investigation,” stated a Google spokesperson in a response emailed to Reuters. The spokesperson affirmed that the company will fully collaborate with the proceedings.
The contention revolves around attempts made by certain Indian startups to resist Google’s imposition of a fee ranging from 11% to 26% on in-app transactions. This comes after the country’s antitrust regulators instructed Google to dismantle a fee structure ranging from 15% to 30% back in 2022.
Google refutes any wrongdoing and asserts that it levies the fee to facilitate investments in the Google Play app store and the Android mobile operating system, thereby ensuring their distribution free of charge.
The CCI has dedicated several months to investigating the complaint lodged by startups, alleging that Google is disregarding the previous antitrust directive prohibiting it from taking punitive actions against companies utilizing alternative billing systems.
