App developers who do not adhere to Google’s policy of using GPBS are not allowed to list their apps on the Play Store, as per CCI’s findings
Google fined $113m by the Competition Commission of India. (Credit: Donatingpictures/Wikimedia Commons)
The Competition Commission of India (CCI) has imposed a fine of INR9.36bn ($113m) on Google for its alleged anti-competitive practices in connection with its Play Store policies.
According to the CCI, the Google Play Store policies mandate that app developers use Google Play’s billing system (GPBS) not only to receive payments for apps distributed or sold via the Google Play Store, but also for some in-app purchases.
App developers who do not adhere to Google’s policy of using GPBS are not allowed to list their apps on the Play Store.
The Commission said that Google has breached provisions of Section 4 of the Competition Act, 2002.
The Indian fair-trade regulator added that Google has been found to have engaged in discriminatory practises by refusing to include YouTube in the GPBS. The CCI indicated that this is biased given that YouTube does not pay the service fee imposed on other apps subject to the GPBS requirements.
The CCI stated: “Mandatory imposition of GPBS by Google, also results in denial of market access for payment aggregators as well as app developers, in violation of the provisions of Section 4(2)(c) of the Act.
“The practices followed by Google results in leveraging its dominance in market for licensable mobile OS and app stores for Android OS, to protect its position in the downstream markets, in violation of the provisions of Section 4(2)(e) of the Act.
“Different methodologies used by Google to integrate, its own UPI app vis-à-vis other rival UPI apps, with the Play Store results in violation of Sections 4(2)(a)(ii), 4(2)(c) and 4(2)(e) of the Act.”
The Commission has ordered the internet company to cease and desist from improper business practices along with directing it to modify its conduct within a defined timeline.
Google has been asked by the CCI to permit app developers to use any third-party billing or payment processing services, either for in-app purchases or for purchasing apps.
Recently, Google was imposed a fine of INR13.37bn ($161.9m) for its alleged anti-competitive practices in connection with Android mobile devices by the CCI.