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CCI slaps penalty of Rs. 936 crores on Google

BNE News Desk


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The Competition Commission of India (CCI) has slapped its second penalty on Google of around Rs. 936 crores for abusing its dominant position concerning its Play Store policies.

Last week, the market watchdog imposed a penalty of Rs. 1,337.76 crores on Google for abusing its dominant position in multiple markets in the Android mobile device ecosystem.

In its fresh ruling, the regulator found Google to be dominant in the markets for licensable OS for smart mobile devices and market for app stores for Android smart mobile OS, in India.

"Selling of in-app digital goods constitutes an important means for app developers to monetise their creations/innovations. However, for in-app digital goods to be distributed to purchasing users, developers must configure their apps so that all purchases of the digital goods go through Google's payment system, which processes the transactions," it said.

Google's Play Store policies require the app developers to exclusively and mandatorily use Google Play's Billing System (GPBS) not only for receiving payments for Apps (and other digital products like audio, video, and games) distributed/sold through the Google Play Store but also for certain in-app purchases.

"Making access to the Play Store dependent on mandatory usage of GPBS for paid apps and in-app purchases is one-sided and arbitrary and devoid of any legitimate business interest. The app developers are left bereft of the inherent choice to use payment processors of their liking from the open market," said the CCI.

Google India was yet to react to the fresh CCI ruling. India is Google's largest market by users.

The CCI also directed Google to cease indulging in anti-competitive practices.

"Google shall allow, and not restrict app developers from using any third-party billing/ payment processing services, either for in-app purchases or for purchasing apps. Google shall also not discriminate or otherwise take any adverse measures against such apps using third-party billing/ payment processing services, in any manner," said the regulator.

The tech giant has been given a time of 30 days to provide the requisite financial details and supporting documents.

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BNE News Desk