Industry system ADIF moves CCI to buy in-app against Google’s upcoming PlayStore policy

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The industry body has changed the Competition Authority of India (CCI), Digital India Foundation (ADIF), seeking interim relief against Google’s upcoming Playstore policy changes. In October 2020, Google announced that it was delaying its new policy, which would force app developers to use only the Google billing system (GPS).

This policy has been in effect since March 2022, meaning application developers will depend on Google’s settings. It also means that a 30% commission will apply to all transactions on the Google Play Store.

In a statement, the ATIF said they had filed a petition before the CCI through their lawyers in international law seeking interim relief. The matter has already been investigated by the CCI for abusing Google’s dominance in the App Market. Earlier, a similar lawsuit was filed against Apple, alleging that it was a breach of trust in the process of making payments and purchases. Apple petition filed by another group, “We are a community fighting together”

According to ATIF, Google’s policy is that developers pay a 30 percent fee to the search company, while other fee processing systems charge a 2 percent fee. The new policy “will have a devastating effect on the operational margins of a large number of startups and make their business models impossible,” the group says.

“ADIF predicts that the Commission will block the order issued by the Commission to maintain the status quo until the end of the current investigation, as Google will begin to implement its terms in the Play Store, which will have adverse and irreversible consequences for India’s new start-up,” said Sijo Guruvilla, Executive Director, Digital India Foundation. Said in the press release.

ATIF, in its petition, stated that the policy “would have a catastrophic effect on India’s digital ecosystem by reducing the choice available to utility developers and users. Industries.”

The main issue for beginners and application developers is to impose the Google Play billing system and exclude other payment methods.

“This issue is not about the percentage of the commission as it is about the anti-competitive practice of forcing the payment option and forcing other payment providers. If left unchecked, such anti-competitive policies and gatekeeper commissions will be imposed on more and more sections, thus having a catastrophic effect on competition and prices in India,” he said. Matrimony.com founder and CEO Murugavel Janagraman said in a statement.

CCI had already launched an investigation in November 2020 into Google’s payment methods for processors and in-app purchases. The Commission has the primary view that such a policy is unreasonable as it restricts the ability of app developers to select a payment processing system. At their discretion.

We have approached Google with a report on this and will update it when available.

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