Alphabet Inc’s Google found itself under scanner after India’s antitrust watchdog on Friday (March 15) ordered an investigation into the tech giant’s in-app billing system stating that the popular US tech giant implemented its policies in a “discriminatory manner”.
The move came amid an ongoing battle between the Indian startups and the tech firm over its fee for in-app payments.
Earlier this month, Google had removed more than 100 Indian applications from its app store citing violations related to payments.
The apps were restored after the intervention of the Indian government.
“We are examining CCI’s order initiating the investigation. The CCI has previously examined our service fee in detail between 2020 and 2022 and found no illegality. However, we take our commitment to comply with local laws and regulations in India seriously and will cooperate with the process in every way,” said a Google spokesperson.
The startups had urged the Competition Commission of India (CCI) to look into the matter and on Friday, the antitrust body ordered an inquiry stating, “Google is implementing its policies in a discriminatory manner”.
It further directed the probe unit to conclude the investigation within 60 days.
The basis of the dispute centres around efforts by some Indian startups to bar the tech giant from imposing a fee of 11% to 26% on in-app payments, after the country’s antitrust authorities ordered it to pull down a system of charging 15% to 30% in 2022.
Google has denied any wrongdoing stating that the fee it charges is to back the investments in the Google Play app store and the Android mobile operating system, making sure it distributes it for free.
India’s IT and Telecom Minister Ashwini Vaishnaw, clearing India’s stance on the matter had said that the country would ensure that the startups get the protection they need.
“India is very clear, our policy is very clear…our startups will get the protection that they need,” Vaishnaw had said.
‘Energy of youth cannot be left to the policies of any big tech,’ says Vaishnaw
He said that India has created a robust startup ecosystem of over one lakh startups, and more than 100 unicorns from scratch in over a decade and that the energy of youth and entrepreneurs must be channelised fully and “cannot be left to the policies of any big tech.”
“I will be telling Google…Our entrepreneurial energy…startups, look at the whole startup India programme, 10 years back we had practically nothing and today we have more than 1,00,000 startups, more than 100 unicorns…this is something…the energy of our youth, the energy of our entrepreneurs, the energy of our talented people that has to be channelised fully well, it cannot be left to the policies of any big tech,” Vaishnaw said.
Google had on March 1, Justiflying its move to delist the apps stated that 10 firms in the country, including several “well-established” ones, did not pay the fees despite having benefitted from the platform and Play Store.
(With inputs from agencies)
