CCI Orders Probe Against Google for Alleged Unfair Business Practices with Respect to Google Pay

The Competition Commission of India on Monday ordered a detailed probe against internet giant Google for alleged unfair business practices with respect to Google Pay as well as Google Play’s payment system. According to the regulator, it is of “the prima facie view that said conduct of Google amounts to imposition of unfair and discriminatory condition, denial of market access for competing apps of Google Pay and leveraging on the part of Google, in terms of different provisions of Section 4 of the Act.” On the issue of mandatory use of Google Play’s payment system for paid apps and in-app purchases, CCI said it was of the “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 per cent for all app purchases and IAPs.” Considering that Play is the dominant source of downloading apps in the Android OS and its condition requiring use of application store’s payment system for paid apps and IAPs, it appears that Google controls the significant volume of payments processed in this market, the order said. “Such conditions imposed by app stores limit the ability of the app developers to offer payment processing of their choice to the users for app purchases as well as IAPs… the Commission is of prima facie view that imposition of such condition is unfair in terms of Section 4 of the Act,” the regulator said. Citing various factors, the regulator said it was of the “prima facie view that said conduct of Google amounts to imposition of unfair and discriminatory condition, denial of market access for competing apps of Google Pay and leveraging on the part of Google, in terms of different provisions of Section 4 of the Act”.