Financial Insights

Google Play Store payments policy ‘unfair’: CCI

The Additional Director General of the Competition Commission of India (CCI) has found the Google Play Store payments policy for Play Store developers to be ‘unfair and discriminatory’.

Section 4 of the Indian Competition Act states that no enterprise may abuse its dominant position, impose unfair practices for the sale of goods and services, or indulge in practices that limit market access for others.

This dispute dates back to September 2020 when the tech giant made a global announcement that it would enforce rules that mandate developers to use it’s payments system. After facing severa backlash, it pushed the date of the same to October 2022.

It also reduced commission from 30% to 15% for the first $1 million of revenue that the developer earns each year. While stating that less than 3% of its developers globally pay a service fee, 99% of whom qualify to pay 15% or less.

This is not the first offence that Google has faced. In 2019, the CCI discovered through an investigation that Google had imposed a one-sided contract on Original Equipment Manufacturers (OEMs) to maintain its dominance in various fields.

The company will be allowed to present it’s argument after which a verdict will be announced in the matter.

Highlight by Aman Agarwal.

Related Articles

Back to top button