India’s Antitrust Body Orders Investigation into Google’s In-App Billing System Dispute

The Competition Commission of India (CCI) has initiated a probe into Alphabet Inc’s Google due to an ongoing dispute with local startups regarding its in-app billing system. The CCI has accused Google of implementing its policies in a discriminatory manner, which has sparked outrage among Indian startups for months.

Startups vs. Google

Indian startups have been in conflict with Google over the fees it charges for in-app payments. The dispute reached a tipping point when Google removed over 100 Indian apps from its app store for billing violations, which were later reinstated after intervention by the Indian government. This move further fueled the resentment of the startups towards Google’s practices.

In response to the CCI’s order for an investigation, a Google spokesperson stated that the company would cooperate with the process. Google maintains that it charges fees for in-app payments to support investments in the Google Play app store and the Android mobile operating system. Google denies any wrongdoing and emphasizes the importance of distributing the fee-free of charge.

The core of the conflict lies in Indian startups’ resistance to Google’s fees ranging from 11% to 26% on in-app payments. This resistance stems from a previous directive by the country’s antitrust authorities for Google to dismantle a system that charged fees between 15% to 30% by 2022. The startups argue that Google is not complying with the earlier directive and is applying adverse measures against companies utilizing alternate billing systems.

Duration of Investigation

The CCI has instructed its investigation unit to conclude the probe within 60 days, indicating the urgency and seriousness of the matter. This timeline reflects the CCI’s commitment to addressing the concerns raised by Indian startups promptly and efficiently.

Overall, the confrontation between Indian startups and Google highlights the complexities of regulatory oversight in the digital economy. It underscores the challenges faced by emerging companies in navigating the dominance of tech giants and the intricacies of antitrust laws. As the investigation progresses, it remains to be seen how the dispute will unfold and whether it will set a precedent for future regulatory actions in the tech industry.