CCI to seek details on Google’s payment policy from app makers

The Competition Commission of India (CCI) is investigating the tech giant for alleged unfair business practices with respect to Google Pay as well as Google Play’s payment system.

Indian app developers have raised concerns over the 30% commission Google charges for paid apps and in-app purchases. “We are in the process of gathering information from app developers on how Google’s upcoming policy would impact them. And any modifications in the payment policy could be worked out,” said one of the persons.

The matter will be taken up for adjudication once the director general’s probe report is available, he said. The person added that the CCI is expected to pass its order by February-end.

Google has defended its policy before the CCI, arguing its terms are “fair” and provide a “competitive environment” to users, said the second person. The CCI is examining Google’s submission and, if required, more details will be sought, he said.

Besides, the competition regulator is also examining reports and comments it has received recently from several online companies, startups, and over-the-top platforms on Google’s “hefty” commissions, the person told ET.

Amid the commission controversy, Google had last month pushed the date for Indian app developers to integrate with Google Play’s billing system to October 31, 2022, from March 31, 2022.

Apple case

The CCI wants to conclude the Google payment policy matter first and then
deal with the case against Apple as it feels both relate to the “same conduct” and the “same developer community” opposing the practices of the two ecosystems.

“The Google payment policy case will set the precedent for Apple, and investigations in the former will make a lot of things clearer about policies of these platforms,” a senior official aware of the plan told ET. “Once the order in Google is out, we can draw parallels and concluding the Apple case will be easier and faster.”

App developers will be asked separately for details on losses stemming from Apple’s business practices, the official said.

Since both companies have app developers in common, the director general (DG) will begin in-person deposition in Apple’s case once the Google case reaches finality.

The antitrust regulator is of the view that the concept of low market share (up to 5%) does not hold merit as the investigation is about anti-competitive activities, said another person familiar with the two cases.

Apple has said that it is not a dominant player in the Indian market and holds just a 0-5% market share, asking the CCI to drop the case on those grounds.

“Investigations in the Apple and Google cases are in sync with other foreign jurisdictions like Europe,” the official said. “They impose certain conditions such as mandatory use of the app store payment system that is restricting the choice available to developers, which can be considered as ‘dominance’.”

He further said that, being a dominant entity, the platform has to be neutral, otherwise competition can’t take place. “Investigation will focus on whether Apple is providing a level playing field for your inbound and outbound sellers and developers.”

Google and Apple didn’t respond to queries.

In its December 31 ruling, ordering an investigation, CCI said Apple’s restriction “prima facie results in denial of market access for the potential app distributors/app store developers in violation of competition norms”.

Further, such practices prima facie result in limiting/restricting the technical or scientific development of the services related to the app store for iOS, due to reduced pressure on Apple to continuously innovate and improve its own app store, which is also in violation of competition rules, the order said.