CCI to Review Google Complaint from Indian Startups and Match Group

CCI to Review Google Complaint from Indian Startups and Match Group
Photo: 15.05.2023 488

India's antitrust authority has issued a non-public order to inspect Google in connection with complaints from some companies about the American IT giant's new payment system.

India's competition watchdog has begun an inquiry into Google after some companies alleged the service fee the U.S. firm charges for in-app payments breaches an earlier antitrust directive, a regulatory order seen by Reuters showed on Friday.

Tinder-owner Match Group and Indian startups have asked the watchdog to investigate Google's new User Choice Billing (UCB) system, which they alleged was anti-competitive.

The Competition Commission said on Friday, May 12, that it felt it was necessary to open an investigation. According to Reuters, the Commission's order was not public, and Google did not comment.

In October, the CCI imposed a $113 million fine on Google and said it must allow the use of third-party billing and stop forcing developers to use its in-app payment system that charges commission of 15%-30%.

Google later began offering UCB to allow alternative payments alongside Google's when purchasing in-app digital content, but some companies complained the new system still imposes a high "service fee" of 11%-26%.

In its order, the watchdog asked Google to explain certain provisions related to the in-app payment system before and after UCB and provide details of policies related to sharing of user and app developer data.

Google needs to respond in four weeks, the order said.

Source: Reuters

digital markets  India 

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