Google faces probe for allegedly misusing its dominant position to force app makers to exclusively use its billing system for in-app purchases and for bundling the search giant’s payments app with Android smartphones sold in the country.
“The Commission is of the prima facie view that the opposite parties have contravened various provisions of Section 4 of the Act. These aspects warrant a detailed investigation,” the order said. Section 4 of the Competition Act pertains to abuse of dominant market position.
The Director General has been directed by the Competition Commission of India (CCI) to finish the probe and submit the report in 60 days.
Paytm, along with several other Indian start-ups, have been rallying against Google’s requirement that apps use the Play Store’s billing system for in-app purchases of digital goods and pay a 30% transaction fee.
On the other hand speaking about Google Pay’s payment system the Commission in its order report noted, it is of prima facie view that mandatory use of application store’s payment system for paid apps and in-app purchases restricts the choice available to the app developers, especially considering when Google charges a commission of 30% (15% in certain cases) for all app purchases. It added that such ‘allegedly’ high fee would increase the cost of Google’s competitors.
“The Commission is of the prima facie view that said conduct of Google amounts to imposition of unfair and discriminatory condition, denial of market access for competing apps of Google Pay and leveraging on the part of Google, in terms of different provisions of Section 4(2) of the Act,” it added further.
Similarly, on the issue of pre-installation and prominence of Google Pay on Android Smartphones, the Commission agreed with the contention of the informant and said that it was prima facie of the view that the alleged conduct on the part of Google merit detailed investigation.
