Google pauses enforcement of Play billing system following CCI order

“Following the CCI’s recent ruling, we are pausing enforcement of the requirement for developers to use Google Play’s billing system for the purchase of digital goods and services for transactions by users in India while we review our legal options and ensure we can continue to invest in Android and Play,” Google said in a blog post.

It added that the requirement to use Google Play’s billing system applies for in-app digital content purchases for users outside of India.

This statement comes shortly after the antitrust regulator imposed a penalty of Rs 936.44 crore on Google for abusing its dominant position with respect to its Play Store policies, apart from issuing a cease-and-desist order.

The commission also directed Google to modify its conduct within a defined timeline. This includes allowing mobile app developers to use third-party payment services on its app store.

From June 1, this year, Google had said that any app that was not compliant with their Play Store policies would be removed from Google Play. However, Google had given developers in India an additional extension until October 31, 2022 to comply due to circumstances with the payments landscape in the country.

Last week, Google said it was “reviewing the CCI (Competition Commission of India) decision to evaluate the next steps.”

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ET had reported last week that Indian startups lauded the CCI verdict but expressed concern about a number of unanswered questions. The most pressing among them was about whether Google would stick to its October 31 deadline to implement the commission as the CCI has given Google three months to comply with the order.

In an emailed statement after the CCI order, the search giant had said that Indian developers have benefited from the technology, security, consumer protections, and unrivalled choice and flexibility that Android and Google Play provide.

“And, by keeping costs low, our model has powered India’s digital transformation and expanded access for hundreds of millions of Indians,” Google said. “We remain committed to our users and developers and are reviewing the decision to evaluate the next steps.”

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