October 26, 2022 – India has fined Google $113 million in yet another antitrust probe, ordering the US tech giant to allow app developers to use third-party billing or payment processing services and refrain from forcing them to use its own billing system in the country.
The probe found Google guilty of abusing its market position to promote its own billing system on Play Store for developers. The fine has been imposed by the Competition Commission of India (CCI), which has prescribed measures for Google to implement in order to correct its anti-competitive practices in the Indian market.
“The Commission hereby directs Google to cease and desist from indulging in anti-competitive practices,” the competition regulator said in a statement on Tuesday.
This is the second anti-competitive penalty slapped on Google by the CCI this month. Last week, the competition watchdog fined Google $161 million for “one-sided agreements” with smartphone manufacturers to ensure exclusivity and dominance of its applications.
As for the latest fine, the CCI said Google abused its “dominant position” and pocketed commissions from transactions made by developers through its own payment processing services on Play Store. Forcing app developers to use its billing system for paid apps and in-app purchases through Google Play Store “constitutes an imposition of unfair condition”, according to CCI.
The watchdog said Google should not restrict developers from using third-party billing payment or payment processing services, and that it should ensure complete transparency in communicating with developers and details about its service fee.
The CCI’s orders, however, can be appealed by Google in an Indian tribunal.
Google has been facing a series of antitrust investigations in India. The probe into Google’s anti-competitive practices began in 2020 when an antitrust case was filed against the tech giant; the complainant’s identity was kept confidential by the CCI at his request.
India is one of Google’s largest markets and according to research firm Counterpoint, its Android operating system powers 97 percent of the country’s 600 million handsets.
