Google receives a Rs. 936.44 billion fine from CCI, its second in less than a week.
On Tuesday, the Competition Commission of India (CCI) fined Alphabet Inc.’s Google Rs 936.44 crore for abusing its dominant position with regard to its Android Play Store policy. The Commission also issued a cease-and-desist order and gave Google a deadline by which to change its behaviour.
In a statement, the CCI said it fined Google Rs 936.44 crore for abusing its dominating position. It’s interesting to note that Google has now received a fine from India’s competition commission twice in less than a week.
The US-based tech giant was fined Rs 1,337.76 crore by the competition commission on October 20 for abusing its dominant position in certain areas to push its payments app and in-app payment system. The internet giant was also told to stop engaging in a number of unfair commercial practises by the watchdog.
The primary platform for app developers in the Android mobile ecosystem is Google’s Play Store. The app store enables its proprietors to profit from the released apps.
According to the regulator’s statement, forcing app developers to use the Google Play Billing System (GPBS) for in-app and paid apps amounts to imposing an unreasonable restriction on them and prevents them from accessing the Play Store.
In addition to the fine, CCI argued that Google shouldn’t prohibit app developers from using any third-party billing or payment processing services.
The announcement stated that Google has been given 30 days to deliver the necessary financial information and supporting documents. In addition, CCI has been looking into claims that the internet giant engaged in anti-competitive behaviour with regard to news content and smart TVs.
The penalty figure, according to CCI, is preliminary because Google presented multiple revenue data points with blatant errors and extensive disclaimers, much like the findings made in its prior judgement against Google in the Android affair.
The fine is equal to 7% of the company’s average relevant annual turnover. According to Counterpoint Research, 97% of India’s 600 million cellphones run the Android operating system. The watchdog added that Google has permitted competing UPI apps to be connected with the intent flow.
Google has also come under fire for requiring software developers using its app store to adopt a proprietary in-app payment system that levies fees of up to 30% on sales made within an app. This practise has drawn ire across the globe, including in South Korea. Google has recently started to accept other payment methods in more nations.
Google has reportedly been requested to take a number of measures, including permitting and not prohibiting app developers from using any third-party billing/payment processing services, either for in-app purchases or for purchasing apps, according to the CCI’s most recent publication.
In addition, the announcement stated that Google “must not discriminate or otherwise take any unfavourable steps against such apps employing third-party billing/payment processing services, in any fashion.”
