The Competition Commission of India (CCI) has launched an investigation into Google following allegations made by certain companies that the service fee charged by the US firm for in-app payments breaches an antitrust directive. According to an order seen by Reuters on Friday, Match Group, the owner of Tinder, and Indian startups have asked the CCI to investigate Google’s User Choice Billing (UCB) system, which they allege is anti-competitive. Google was fined $113 million (nearly Rs. 930 crore) by the CCI in October, which imposed a penalty for forcing developers to use its in-app payment system that charges a commission of 15%-30% and ordering the firm to allow the use of third-party billing. Google later began offering UCB to allow alternative payments, but some companies have complained that the new system still imposes a high service fee of between 11% and 26%. The CCI has asked Google to provide details of its policies related to sharing user and app developer data and to explain the in-app payment system’s provisions before and after UCB. The company must respond in four weeks.
Google has previously stated that the service charge supports investments in the Google Play app store and the Android mobile operating system, allowing it to distribute it for free, and covers developer tools and analytics services. India is a major growth market for the company, which also faces challenges from other regulatory authorities, such as a setback that required it to change how it markets its Android system.
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Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
