CCI Directs Investigation Against Google Pay For Alleged Abuse Of Dominant Position [Read Order]
4 years, 2 months ago

CCI Directs Investigation Against Google Pay For Alleged Abuse Of Dominant Position [Read Order]

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The Competition Commission of India has ordered investigation against Google Pay for alleged abuse of dominant position. The Commission expressed a prima facie view that mandatory use of Google Play store's payment system for paid apps & in-app purchases restricts the choice available to the app developers to select a payment processing system of their choice especially considering when Google charges a commission of 30% for all app purchases and IAPs. The complaint before CCI in this regard raised the following issues: mandatory use of Google Play's payment system for purchasing the apps & IAPs in the Play Store and excluding other mobile wallets/UPI apps as one of the effective payment options in the Google Play's payment system Google encourages pre-installation and opting of Google Pay as the default payment option on new smart mobile devices using the Android OS at the time of initial set up Prominent placement of Google Pay on the Play Store Search Regarding the first three issues, the commission agreed with the complainant's allegations and ordered investigation on those counts. "If apps do not comply with Google's demand of using Play Store's payment system and Google Play's In-App billing, they will not be able to access more than 90% of the target users in India, which is not a feasible option for any app provider," the Informant had alleged. The Bench, also comprised of Sangeeta Verma and Bhagwant Singh Bishnoi was also of prima facie view that mandatory use of application store's payment system for paid apps & in-app purchases restricts the choice available to the app developers to select a payment processing system of their choice, especially considering when Google charges a commission of 30% for all app purchases and IAPs.

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