India’s antitrust regulator has initiated an investigation into Alphabet’s Google following a dispute with Indian developers over its in-app billing system. The Competition Commission of India (CCI) has accused Google of implementing its policies unfairly and discriminatorily, violating several provisions of the country’s antitrust laws. The order came in response to complaints filed by multiple Indian app developers and industry groups, alleging unfair practices by Google.
The investigation focuses on Google’s billing system for in-app purchases and paid apps on its Play Store. The CCI alleges that Google charges app developers excessive and unfair service fees ranging from 10% to 30%, which it considers disproportionate to the economic value of the services provided.
Furthermore, the CCI accuses Google of implementing its policies in a discriminatory manner, making arbitrary distinctions between apps offering digital goods and services and those offering physical goods and services, despite both availing similar facilities on the Play Store.
This investigation adds to Google’s challenges in India, its largest market by users, where it has faced longstanding allegations of anti-competitive practices. Previously, the CCI imposed a record fine on Google for abusing its dominant position in the Android smartphone market and ordered changes to its business model.
Google has defended its Play Store policies, stating that the service fees support its investments in Android and Play Store infrastructure, enabling developers to access a global platform with billions of consumers.
