CCI Tells NCLAT, Google’s Play Store Policies Impede Competition

CCI Tells NCLAT, Google’s Play Store Policies Impede Competition

The regulator is assessing whether the so-called user choice billing system is in sync with the rules

The Competition Commission of India (CCI) has submitted before the National Company Law Appellate Tribunal (NCLAT) that Google's 10-30 percent service fee on app payments via Play Store hinders app developers' ability to invest in technology and service improvements.

The competition watchdog argued after Alphabet Inc., the parent company of Google, appealed against an earlier order of the CCI. The latter imposed Rs.936-crore on the firm in October 2022 for alleged anti-competitive practices in its Play Store policy.

The CCI's counsel said the imposition of Google's mandatory Play Billing System (PBS) reduced developers' choices and impeded competition.

The Play Store policy requires app developers to use PBS not only for receiving payments for buying apps and digital products like audio, video and games, but also for certain in-app purchases.

Following the CCI order, Google had introduced an alternative billing system, but the fee remained high.

The counsel for the CCI explained, "If developers are given a choice to use other payment processors, they would be charged around 1 percent, leaving them with more money to invest in producing better content and developing better technology.”

He added that the test for establishing abuse of dominance in a market was not that some entity went out of business due to a dominant player's action, but whether there was an erosion of competition due to its conduct and policies.

"The test is not that 'show me the effect’, it is 'show me that some enterprise has not been allowed to continue or conduct the business,’” the counsel stressed.