In late 2022, India’s Competition Commission (CCI) imposed a $113 million fine on Google for its anti-competitive billing practices, following a complaint from local developers. The CCI found that Google had abused its dominant position in the Android market by compelling developers to utilize its billing system.
In response to the ruling, Google halted the enforcement of its new in-app Play Store billing policy in India. The company subsequently appealed to India’s National Companies Law Appellate Tribunal (NCLAT).
Recently, the tribunal reduced the fine to approximately $25 million but upheld CCI’s conclusion that Google misused its dominance, preventing a fair competitive environment for third-party app developers. The NCLAT’s decision suggests that tighter regulations regarding Google’s billing practices may be forthcoming, although the final details of the verdict are still pending.
Globally, Google has come under scrutiny for its Play Store policies, facing antitrust actions in regions such as the European Union, Japan, South Korea, and the United States. The company’s billing practices have faced significant criticism and regulatory pressure, prompting Google to consider alternative options for developers to implement their own billing systems.
However, these measures have not fully appeased many governments. In addition to the billing issues, Google is also under investigation for its default search engine agreements.
Recently introduced changes allow developers to present an alternative billing option during checkout, yet Google maintains a substantial revenue cut from transactions, taking around 15% to 30% in commission. Even when third-party payment processors are used, Google reduces its cut by only 4% to cover payment processing fees.
As a result, many developers still find themselves at a disadvantage in the Play Store ecosystem.
Leave a Reply