India’s antitrust body has taken a decisive step by ordering a probe into Alphabet Inc’s Google, following an ongoing dispute between the tech giant and local startups regarding its in-app billing system. The Competition Commission of India (CCI) issued the order, asserting that Google implemented its policies in a “discriminatory manner.”
The conflict between Indian startups and Google has been brewing for several months, primarily revolving around the fees levied by Google for in-app payments. Tensions escalated earlier this month when Google removed over 100 Indian apps from its app store due to billing-related violations. However, after intervention from the Indian government, the apps were reinstated.
In response to the startups’ grievances, the CCI has directed its investigation unit to delve into the matter and complete the probe within 60 days. The watchdog emphasized that Google’s implementation of its policies was discriminatory, prompting the need for a thorough investigation.
A Google spokesperson responded to the CCI’s order, stating that the company is examining it and will fully cooperate with the investigation process.
The core of the dispute lies in Indian startups’ efforts to challenge Google’s imposition of a fee ranging from 11% to 26% on in-app payments. This contention arises following a directive from India’s antitrust authorities in 2022, instructing Google to dismantle its system of charging fees ranging from 15% to 30%.
Google, however, maintains its stance, asserting that the fees it charges are essential for supporting investments in the Google Play app store and the Android mobile operating system, thereby ensuring the distribution of these platforms for free.
This investigation adds another layer to the ongoing scrutiny of Google’s practices in India, particularly regarding its compliance with antitrust directives. The outcome of the probe will likely have significant implications for the relationship between Google and Indian startups, as well as for the broader digital ecosystem in India.
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