'Google Takes Advantage Of Its Dominance': Former ADIF's Executive Director Digs Deep Into Anti-Competetive Practices

The antitrust watchdog, the Competition Commission of India (CCI), hit the tech giant Google two times in October 2022 with collective penalties of over ₹2,200 crores. In the first case, CCI slapped a penalty of ₹1,337 crores for anti-competition practices and abusing its dominant position. The second time, the tech giant was fined over ₹930 crore due to its anti-competitive policies in relation to the play store.

While imposing the second penalty, the CCI asked Google to allow app developers to use third-party payment services for purchasing apps or in-app purchasing. The decision was made after the antitrust watchdog interviewed several leading app developers- Paytm, Zomato, Vivo, and Microsoft, among others.

Notably, Google earlier mentioned that any app not compliant with the play store policy would be removed from the platform starting June 1, 2022. Later, the American company granted app developers in India an extension till October 31 to comply with its policy which will make users make in-app purchases or app purchases through Google's payment gateway.

The developers expressed their concern and demanded to carry on third-party payment services instead of Google's own billing method.

CCI's Smart Move Prevents Policy Enforcement

While the tech giant gave app developers a deadline of October 31 to comply with its policy, the CCI imposed restrictions with a penalty beforehand, preventing its policy enforcement.

While talking with The Logical Indian, Former Executive Director of ADIF, Sijo Kuruvilla George, one of the parties in the CCI case, said, "The CCI has prevented the enforcement of Google's policies. The company has now received time to produce supporting documents and financial copies."

After the CCI imposed a fine of around ₹930 crores, many questioned that is it sufficient to make Google realise its fault because it could pay this fine and still set its policy in the Indian market.

While commenting on the same, Sijo Kuruvilla mentioned, "The European Union once imposed around $4.3 billion fine on the tech giant. Comparatively, the CCI's fine is less. But it gives the sense of the quantum of fine."

He added, "There was only one challenge- if Google can pay the fine and continue doing what they do. But this is not the same case here as CCI has restricted its policy prior to its implementation."

Will Google Stop Using Its Dominance?

As the CCI has already given some time to the American company, the chances are that Google will comply with the CCI's order as they have the largest market of consumers in India. The company has also put a stay on their policy from November 1, which was meant to remove third-party payment services from Play Store.

However, Google has not officially announced relief for the Indian app developers. While mentioning Google's next move, Kuruvilla said, "The company, in light of the CCI order, is not implementing their policy now. But they might challenge the order through legal options if required."

In recent years, many industry leaders have figured out that Google has taken advantage of its position in the market. From not allowing third-party payment services to giving pre-installed apps (Google Chrome, Youtube, and other apps) through android-operated mobile devices, the tech giant has used its resources critically to carry on the legacy.

The app developers feel that Google is forcing them to use its billing system to acquire considerable commission, ranging from 15-20 per cent on each in-app purchase or app purchase. Against the backdrop of such a situation, CCI has carried out the case, hoping to give significant relief to Indian app developers.

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