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Google is being investigated for violations of the antitrust law for unduly granting privileges to its payment service, Google Play, for Play Store payments.
On November 9, 2020 (local time), the CCI of the Indian Competition Commission has installed Google Play in advance on the beta nature of the app purchase payment method, the use of the Google payment agency system and charging high fees for the Google Play Store app. OEM agrees to the terms of Google’s imposition, and Google has announced the conduct of research on Google Play business and search.
CCI pointed out that most smartphone makers in the market do not have a presence to replace Android OS, and there are no restrictions on Google’s position. According to the informant, according to the Google payment policy, app developers are limited in payment methods that can be used only by using the Google Play in-app payment system. In addition, Google’s competitors claim that the cost is increasing from the point of view of Google’s competitors, as it costs $25 to register the Google Store and requires a 30% commission, and competitors such as music streaming apps, e-book apps, and audiobook apps are at a disadvantage.
It is also pointed out that Google Play is designed to be easier to use than other payment methods and that it is disrupting fair competition. However, CCI declined to investigate suspicions about the operation of search ads and exclusive access to data through Google Play. On this case, CCI must complete a report within 60 days.
This is the 5th time that Google has been criticized for violating antitrust laws in India. In October 2020, it was also sued for using Android’s dominance in the smart TV market to hinder competition. Related information can be found here .
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