Google Pauses Enforcement Of In-App Billing Policy After CCI Fine

Days after the ruling from the Competition Commission of India (CCI) that saw a fine of INR 936.44 Cr slapped on it, Google has pulled back the enforcement of the in-app billing policy in India for now.

Earlier, the tech major set a deadline of October 31 for app developers in India to mandatorily start using the Google Play Billing Service (GPBS).

Google pulling back the in-app billing policy also comes more than a month after the tech major announced its user choice billing pilot in India, which would allow users to choose whether they want to continue with GPBS or a third-party payment gateway.

The CCI imposed a fine of INR 936.44 Cr on Google for abusing its dominant position in the Android OS and Play Store markets to force app developers to use its billing service. The antitrust watchdog also said that the tech major was found to be charging high commission fees (up to 30%) from app developers.

Google said last week that it is evaluating its next course of action after the penalty was slapped. The tech major said Indian developers have benefited from its technology, security, consumer protection and the choice and flexibility of Android and Google Play.

“And, by keeping costs low, our model has powered India’s digital transformation and expanded access for hundreds of millions of Indians. We remain committed to our users and developers and are reviewing the decision to evaluate the next steps,” Google had said earlier.

Google has been on the receiving end of two of the biggest penalties ever imposed by the CCI. Within five days, Google was charged with abusing its dominant position in the Android ecosystem and Play Store and fined a combined total of INR 2,274 Cr.

In the verdict for the second penalty, the CCI noted that Google entered into several agreements with app developers. Under these agreements, app developers were mandated to use Google’s billing system, thereby excluding other payment enablers from the ecosystem.

Further, if an app developer wanted to enable in-app purchases (IAPs), they would have to pay the tech major a certain amount in service fees.

Both these conducts were found to be an abuse of dominance by the antitrust watchdog, which concluded that Google violated various provisions of Section 4 of the Competition Act, 2002.

The ruling from CCI also directed Google to allow app developers to use third-party payment systems, stop imposing unfair pricing conditions on app developers and bring more transparency in communications regarding service fees and other charges.