Google’s billing system for app developers is “unfair and discriminatory,” India’s antitrust regulator said in the initial findings of an extensive investigation, paving the way for potential penalties in future.
The Competition Commission of India (CCI) found Google discriminate against developers in its Play store billing policy, as per the documents seen by Bloomberg News.
This findings come after a months-long investigation trigger by protests from developers, who’ve complain the US internet giant charges an unfairly high fee in return for using Android app stores and its proprietary payments service.
Alphabet and Apple have come under pressure from regulators around the world who accuse the twin mobile giants of forcing developers to use their payment systems, then taking an outsized cut of revenue.
Google was force to provide an alternative billing system after regulatory action in South Korea.
As Google said it was reducing app makers’ fees by 4% in that market.
“Google is imposing unfair and discriminatory conditions in violation” of regulations, the Indian agency said in its preliminary report date 14th March.
Google Said :
The response in India has been strident, underscoring how Google’s troubles could undercut future growth.
More than 200 startup founders band together to open discussions with the government to stop it from imposing a fee of as much as 30% on smartphone app purchases, its standard levy around the world.
Google delay implementation of that rule after an outcry in late 2021, the country’s tech industry remains determined to constrain the colossus.
Representatives for the antitrust agency didn’t immediately respond to requests for comment.
Google Said :
The backlash in India echoes global opposition to the fee structure imposed by Google and Apple in their online app stores.
Fortnite-maker Epic Games filed a lawsuit in the US against the two companies for how they impose such charges.
India’s authorities have proven willing to go after the largest corporations and take forceful action, when they see a clear, national interest.
Companies such as Apple were prohibit for years from opening their own retail stores to protect local operators, and TikTok and more than a hundred other Chinese apps were ban over security concerns.