Tech giant Google on Tuesday said it is pausing the enforcement of its new in-app billing policy in India, following the recent CCI anti-trust ruling against the company.
According to a previous policy of the company, app developers were required to use only Google Play’s billing system for the purchase of goods and services for transactions by users in India. This policy was supposed to be effective from November 01.
However, with the Competition Commission of India (CCI) on October 25 directing Google not to restrict app developers from using any third-party billing or payment processing services to purchase apps or for in-app billing on Google Play Store, the tech giant has now decided to pause the enforcement of its in-app billing policy for users in India.\
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“Following the CCI’s recent ruling, we are pausing this enforcement of the requirement for developers to use Google Play’s billing system for the purchase of digital goods and services for transactions by users in India while we review our legal options and ensure we can continue to invest in Android and Play. The requirement to use Google Play ‘s Billing system applies for in-app digital content purchases for users outside of India,” said a Google blogpost.
The CCI on October 25 imposed a ₹936.44 core penalty on Google for abusing its dominant position with its Play Store policies.
The case pertained to its that required app developers to exclusively and mandatorily use Google Play’s Billing System (GPBS) not only for receiving payment of apps distributed/sold through Google Play Store, but also for certain in-app purchases made by users of apps after they have downloaded/purchased the app from the Play Store.
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CCI had directed Google to allow, and not restrict, app developers from using any third party billing/payment processing services, either for in-app purchases or purchasing apps.
Google was also directed not to discriminate or otherwise take any adverse measures against such apps using third party billing/payment processing services, in any manner.
Earlier, Google had set October 31 as a new deadline for app developers in India to comply with its payment policy requiring them to use Google Play Billing System for buying digital content in India.
The policy restricted third party payment billing service providers on Play Store. Start-ups were aggrieved of this policy as they claimed Google has been abusing its dominant position by imposing its own billing system and taking whopping commission from transactions ranging from 10-30 per cent whereas third party payment billing service providers were charging 2-3 per cent for similar services.
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If the app developers do not comply with Google’s policy of using its billing system, they were not permitted to list their apps on the Play Store and had to lose out the vast pool of potential customers in the form of Android users.
Making access to the Play Store dependent on mandatory usage of GPBS for paid apps and in-app purchases was found to be one sided and arbitrary and devoid of any legitimate business interest. The app developers were found to be deprived of choice in using payment processors from open market, CCI said in its ruling.
