CCI initiates investigation into Google's alleged pricing policies on its Play Store

The Competition Commission of India (CCI) has initiated an investigation into Google's alleged discriminatory pricing policies on its Play Store following complaints from various entities. This move comes less than two years after the CCI imposed penalties and directives on Google concerning Play Store practices.

The complaints revolve around Google's updated payment policies for its Play Store, which are claimed to violate competition laws. Several stakeholders, including app developers, payment processors, and users, allege adverse impacts due to these policies.

Google has responded, stating its commitment to complying with local laws and regulations, expressing willingness to cooperate with the investigation. However, concerns persist regarding the revenue distribution model within the Play Store, with developers potentially bearing significant costs.

The CCI observed that while Google claims a majority of developers pay no service fee, the reasoning behind the fee seems questionable, particularly regarding its necessity for services rendered. The watchdog also noted discrepancies in Google's treatment of different types of apps regarding fees and mandates.

The investigation aims to ascertain if Google abused its dominant position under Section 4 of the Competition Act. App developers are purportedly disadvantaged in negotiations with Google due to their dependency on the Play Store for access to Android users in India.

Additionally, it's alleged that Google has discriminated among apps in the OTT industry regarding payment systems. Despite a previous order directing Google to allow in-app purchases and third-party billing, complaints suggest non-compliance.

This isn't the first instance of the CCI taking action against Google regarding Play Store policies. In 2022, Google was fined and directed to cease unfair practices, a ruling it contested.

Overall, the investigation underscores ongoing concerns regarding Google's market dominance and its impact on app developers and competition within the digital ecosystem.