CCI launches probe into Google Play Store over allegations of market dominance, company responds

The Competition Commission of India (CCI) has initiated an investigation into the practices of tech giant Google within the Indian online market, specifically targeting its Play Store operations. The move comes amidst accusations of Google leveraging its dominant position to unfair advantage, as reported on Friday.

According to the CCI, Google stands accused of imposing unjust terms and discriminatory actions within its Play Store platform, allegedly violating several provisions outlined in India's anti-trust regulations. The commission's investigative arm has been mandated to complete the probe within a 60-day timeframe.

Central to the allegations is Google's purported discriminatory application of its policies, particularly in the differentiation between apps offering digital services and those facilitating physical transactions. Despite similar functionalities, the CCI contends that Google has been drawing arbitrary distinctions, potentially disadvantaging certain developers on its platform.

Responding to the probe, a spokesperson for Google stated, "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."

The CCI's decision to launch the investigation follows a formal complaint lodged by numerous Indian app developers and industry groups. Their grievances primarily revolved around alleged unfair treatment by Google, including the arbitrary removal and subsequent restoration of their applications.

Among the complainants is People Interactive, alongside other developers, who raised concerns specifically regarding the service fee structure imposed by Google Play. Prateek Jain, Associate Director of The Alliance of Digital India Foundation (ADIF), lauded the regulatory intervention, emphasising its importance in fostering a fair business environment.

"We believe that fair implementation and monitoring of billing systems will result in competitive pricing of services in the market, boost innovation, safeguard consumer choice, and benefit the interests of all stakeholders in the digital ecosystem," Jain remarked in a statement.

Earlier discussions at the ADIF conference shed light on the challenges faced by startup founders, particularly regarding Google's fee structure for in-app payments. Snehil Khanor, Co-Founder & CEO of TrulyMadly, voiced concerns over the financial burden imposed by Google's charges, citing figures of up to 26% of app revenue.

The founders highlighted a tangible impact on their businesses, with a reported 40% drop in operations observed shortly after their apps were temporarily delisted from the Play Store.