India directs an investigation into Google's Play Store payment structure

Suspecting violations of competition laws, the Competition Commission of India opened an investigation into Google's Play Store billing mechanism. The action was taken in response to concerns from startups and the platform's removal of Indian apps. Google came under fire for allegedly disobeying orders not to impede third-party billing systems. Ensuring equitable policy application is the goal of the investigation.

The commission stated it has preliminary concerns that Google may have breached Sections 4(2)(a), 4(2)(b), and 4(2)(c) of the Act, prompting a thorough examination of the issue.

Following this finding, the competition watchdog has directed the Director General (DG) to carry out an inquiry, finalise it, and submit a report within 60 days. The order issued follows a petition submitted by a group of start-ups, accusing Google of breaching the CCI's previous directive, which instructed the company not to impede app developers from utilising third-party billing or payment processing services for app purchases or in-app billing on Google Play.

Recently, Google had removed more than 10 Indian apps from the Google Play store for not complying with its app billing policy for an "extended period of time." The apps that had been removed from the platform include prominent names like Naukri(dot)com, Shaadi(dot)com, 99acres, Naukrigulf Job Search App, Naukri Recruiter, Shiksha, Truly Madly Quack Quack, and Kuku FM. Following this, the Indian government took a stand against this.

The government had called Google after which the tech giant re-listed the apps on the official Google Play Store.

This action was a part of Google's drive to rid those apps from Indian app developers which the tech giant said have not complied with its app billing policy for an "extended period of time."

There is one thing common in these companies, and that is they were petitioners in a case against Google's app billing policy in the Supreme Court.

Google, while giving the reason for this step, said in a blog post, "After giving these developers more than three years to prepare, including three weeks after the Supreme Court’s order, we are taking necessary steps to ensure our policies are applied consistently across the ecosystem."