Competition Commission Of India Orders Probe Into Google's In-App Payment Fees

The Competition Commission of India (CCI) stated that an investigation is required into claims that the service fee levied for in-app payments by internet giant Google violates a guideline by the nation's antitrust regulator, according to a Reuters report. In a recent order, the CCI stated that "it is of the opinion that an inquiry needs to be made."

The report stated that Indian entrepreneurs and Match Group, the owner of Tinder, had requested that the competition watchdog look into Alphabet's Google's new User Choice Billing (UCB) scheme, which they claimed to be anti-competitive.

The CCI fined Google $113 million in October and ordered it to allow third-party charging and stop requiring developers to use its in-app payment system, which levies a 15%-30% commission.

Complaints have been received by the Competition Commission of India (CCI) from Match and the Alliance of Digital India Foundation, alleging that Google has failed to comply with a previous antitrust order.

The complaints argue that Google's new system, which allows alternative payments alongside its own for in-app digital content, still imposes a high "service fee" of 11%-26%. As per the previous directive, Google was ordered not to impose any "unfair and disproportionate" conditions, which the complainants allege are still in place.

The watchdog ordered Google to explain specific clauses relating to the in-app payment system before and after UCB and to disclose details of rules relating to the sharing of user and app developer data.

The order stated that Google must reply within four weeks.

Google previously stated that the service fee supports investments in the Google Play app store and the Android mobile operating system, guaranteeing that it distributes both for free, and covers developer tools and analytic services.

The business, which views India as a significant growth market, also has to deal with other legal obstacles, including a setback that made it necessary to alter how it promotes the Android operating system.