Google: Google disobeying CCI orders, charging app developers 11-26% commission: ADIF – Times of India
The Alliance of Digital India Foundation (ADIF) has claimed that Google is blatantly disobeying the Competition Commission of India (CCI) orders in India, charging app developers an exorbitant 11-26 percent commission. ADIF is the policy thinktank focusing on Indian digital startups.
Google recently changed its billing requirement for app developers wherein it said that if a user pays through an alternate billing system, the Google plays service fee will be reduced by 4%. This means that while an alternative billing system will be permitted by Google, it will continue charging service fees from the developers which will be 4% less than the normal service which they would charge if the user had availed of the GPBS option i.e., the commission rate under user choice would be 11% or 26%, as the case may be, said ADIF. “Therefore, despite not using any service from Google, app developers will be forced to pay commissions to Google,” said ADIF.
This change claimed by Google is in response to regulatory developments in India, which refers to orders of the Competition Commission of India. This is nothing but another blatant attempt by Google to evade its obligation under the law and while Google claims that these changes are ostensibly in response to the regulatory development, the said change is in gross violation of the remedies mentioned in the CCI Order.
Lack of transparency
Therefore, despite not using any service of Google, app developers will be forced to pay commissions to Google. This is a clear violation of a specific direction of the CCI that Google shall not impose any condition (including price related condition) on app developers, which is unfair, unreasonable, discriminatory, or disproportionate to the services provided to the app developers. Further, there is absolutely no transparency as to why Google will charge 11/26% even when the user avails of a third-party processing service. This becomes all the more problematic considering that most of the transactions carried out in the app digital ecosystem do not use GPBS.
“This is a clear violation of a specific direction of the CCI that Google shall not impose any condition (including price related condition) on app developers, which is unfair, unreasonable, discriminatory, or disproportionate to the services provided to the app developers,” said the ADIF
The CCI in October last year imposed a penalty of Rs 936.44 crore on Google for abusing its dominant position with respect to its Play Store policies, apart from issuing a cease-and-desist order. The Commission also directed Google to modify its conduct within a defined timeline.
Google recently changed its billing requirement for app developers wherein it said that if a user pays through an alternate billing system, the Google plays service fee will be reduced by 4%. This means that while an alternative billing system will be permitted by Google, it will continue charging service fees from the developers which will be 4% less than the normal service which they would charge if the user had availed of the GPBS option i.e., the commission rate under user choice would be 11% or 26%, as the case may be, said ADIF. “Therefore, despite not using any service from Google, app developers will be forced to pay commissions to Google,” said ADIF.
This change claimed by Google is in response to regulatory developments in India, which refers to orders of the Competition Commission of India. This is nothing but another blatant attempt by Google to evade its obligation under the law and while Google claims that these changes are ostensibly in response to the regulatory development, the said change is in gross violation of the remedies mentioned in the CCI Order.
Lack of transparency
Therefore, despite not using any service of Google, app developers will be forced to pay commissions to Google. This is a clear violation of a specific direction of the CCI that Google shall not impose any condition (including price related condition) on app developers, which is unfair, unreasonable, discriminatory, or disproportionate to the services provided to the app developers. Further, there is absolutely no transparency as to why Google will charge 11/26% even when the user avails of a third-party processing service. This becomes all the more problematic considering that most of the transactions carried out in the app digital ecosystem do not use GPBS.
“This is a clear violation of a specific direction of the CCI that Google shall not impose any condition (including price related condition) on app developers, which is unfair, unreasonable, discriminatory, or disproportionate to the services provided to the app developers,” said the ADIF
The CCI in October last year imposed a penalty of Rs 936.44 crore on Google for abusing its dominant position with respect to its Play Store policies, apart from issuing a cease-and-desist order. The Commission also directed Google to modify its conduct within a defined timeline.
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