CCI Orders Probe Over Google Play's 'Unfair' Practices

The Competition Commission of India has directed a thorough investigation into Google Play services following findings of potential unfair practices. 

The CCI's preliminary assessment suggests that Google may have imposed unfair pricing and constrained app market growth. The commission alleges that Google is implementing its payment policy in a discriminatory manner, according to an order on Friday.

The CCI initiated the investigation based on three complaints, including from Shaadi.com, Sangam.com, Kuku FM, the Indian Broadcasting and Digital Foundation and the Indian Digital Media Industry Foundation.

The commission found concerns about the revenue distribution model within Google Play. Developers may face significant costs, with nearly half of their chargeable value going towards Google's service fee (up to 30%) and additional spending on advertising across Google's platforms and third-party apps. 

Google claims that 97% of developers pay no service fee. However, the commission said that the tech giant generates revenue from free apps through advertisement-related revenue or other means. This suggests that even these apps contribute to the costs associated with Google Play and the android ecosystem.

The commission also raised concerns about Google's arbitrary distinction between apps offering digital goods/services (digital delivery apps) and those offering physical goods/services (physical delivery apps).

Google charges a service fee on digital delivery apps but not on physical delivery apps. The regulator said this differentiation appears arbitrary and discriminatory, impacting app developers' market access and freedom to select business models.

Google's selective imposition of its payments policy on certain app developers in the OTT industry raises questions of discrimination, the CCI observed.

For example, Amazon Prime Video offers in-app purchases for things like subscribing to Prime, renting movies and accessing other channels. But Google does not require Amazon Prime Video to use its payment system. Instead, Amazon Prime Video can use its own payment system without any extra charges.

This makes it seem like Google is picking and choosing which apps have to follow its rules, which is not fair, the CCI said.

Based on these findings, the commission directed its director general to conduct a detailed investigation and submit a consolidated report within 60 days.