In a recent development, India’s antitrust body has launched an investigation into Alphabet Inc’s Google regarding the company’s in-app billing system. The dispute arose after local startups accused Google of implementing its policies in a discriminatory manner, particularly when it comes to the fees charged for in-app payments. This ongoing conflict has been a point of contention between Indian startups and Google for months.
The Competition Commission of India (CCI) has ordered a probe into Google based on the complaints raised by Indian startups. The CCI has stated that Google is implementing its policies unfairly, thus warranting a thorough investigation into the matter. The watchdog has directed its investigation unit to complete the probe within a period of 60 days, indicating the seriousness of the allegations.
In response to the CCI’s order for investigation, Google has stated that it will cooperate with the process in every possible way. The company has denied any wrongdoing and has justified the fees charged for in-app payments as necessary for supporting investments in the Google Play app store and Android mobile operating system. Google has emphasized that the fees are essential for ensuring the distribution of apps for free.
The primary issue at the heart of the dispute between Indian startups and Google is the fees charged for in-app payments. Some Indian startups have been pushing back against Google’s imposition of a fee ranging from 11% to 26% for in-app transactions. This conflict has intensified after the Indian antitrust authorities instructed Google to dismantle its current fee structure of charging 15% to 30% by 2022.
The Competition Commission of India had previously issued a directive to Google, instructing the company not to take any adverse measures against companies that choose to use alternate billing systems. However, Indian startups have alleged that Google has not been following this directive, leading to further dissatisfaction and complaints from the startup community.
The ongoing dispute between Indian startups and Google over the in-app billing system highlights the challenges faced by local businesses in navigating the digital marketplace. With the CCI stepping in to investigate the matter, it remains to be seen how this conflict will unfold and what implications it may have for the broader tech industry in India.
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