Indian Antitrust Agency Denda Google Due To Anti-Competition Behavior In Payment Systems

Google was fined again by Indian authorities. (photo: dock. Pixabay)

JAKARTA - Alphabet Inc's Google cannot limit app developers using third party billing or payment processing services in India. This was said by India's Antitrust Agency on Tuesday, October 25 after fined the US tech giant $113 million for anti-competitive practices.

India's Competition Commission (CCI) says Google is using a "dominant position" to force app developers to use in-app payment systems, while selling digital goods in apps is the main means for developers to monetize their jobs.

The CCI move is the latest blow to Google in one of its priority markets, where previously they will also be fined another USD 162 million by supervisors on Thursday, October 20 for anti-competition practices related to its Android operating system. India asked Google to change its approach to its Android platform.

According to Counterpoint Research, Google's operating system, Android, also powers 97% of India's 600 million smartphones.

Google did not respond to a request for comment from Reuters on the fine. The US tech giant could appeal the decision in Indian courts.

The CCI order on 199 pages states that in addition to fines, Google is also required to adopt 8 solutions or operating adjustments within three months, including not limiting "app developers using third-party payment/payment processing services, either for in-app purchases or for app purchases".

CCI also ordered Google to ensure complete transparency in communicating with app developers and details about the cost of the service charged.

The order would be very helpful for Indian startups and small companies that have long objected to Google's policy of imposing the use of its own payment system on app developers.

An investigation into Google's payment ecosystem began in 2020, after an antitrust case was filed against Google. The watchdog kept the identity of the reporter secret at his request.

Naval Chopra, an antitrust partner at Indian law firm Shardul Amarchand representing the complainant, told Reuters last Tuesday that CCI orders would help ensure healthy competition and reduce costs for app developers.

"The CCI order that directs Google to allow alternative payment processing systems will eliminate the artificial barrier Google has set up," said Chopra, who declined to reveal the name of the reporter he represented.

The search engine giant is also facing a separate investigation into its business behavior on India's smart TV market.

Google called the CCI move last Thursday a "big setback for Indian consumers and businesses", adding it would review orders and decide on the next steps.

Google has faced criticism globally, including in South Korea and in Indonesia, for mandated software developers who use its app stores to use an in-owned app payment system that charges commissions up to 30% for in-app purchases. Recently, Google has started allowing alternative payment systems in more countries.