Close on the heels of Alliance of Digital India Foundation (ADIF) approaching CCI alleging non-compliance by Google of competition watchdog’s behavioural directions issued last year in Google Play Billing Policy case, the start-ups have stepped up the heat on the tech giant by now seeking prosecution of its top executives for not complying with CCI order.
CCI can impose monetary penalties for non-compliance of its directions besides launching prosecution.
CCI is yet to take a call on the ADIF application seeking prosecution of Google’s top executives, plausibly fearing that it may vitiate the business environment in India and affect the ease of doing business, experts noted.
ADIF, which is a policy think-tank for digital start-ups, on late Friday evening issued a statement that on the basis of its submissions, CCI has ordered an inquiry in Google Lagaan case for non-compliance.
“CCI today in the Google Lagaan case directed Google to respond to various queries regarding their policies and processes on data sharing, UCB and anti-steering provisions in a time-bound manner”, ADIF statement said.
‘UCB is unfair’
The CCI order is in response to the ADIF submission with CCI on Google not complying with the CCI directions and introducing User Choice Billing (UCB), which is unfair, irrational and discriminatory, according to ADIF.
Google’s new in-app billing fee system, known as UCB, has gone live in India from April 26. This would mean that app developers in India even if they provide third-party billing system could end up paying service fee as high as 26 per cent to Google for in-app purchases made through Google Play Store.
This would take away a huge chunk of the revenue made by Indian app developers and start-ups and would render business models of many young start-ups unviable, especially the ones relying on in-app purchases, paid apps or subscriptions, according to ADIF.
This commission is not so different from the colonial ‘Lagaan’ — it is unfair to app developers and to the millions of users who rely on digital applications for their day-to-day activities, ADIF had said.
CCI had in its October 25 order of last year directed among other things that Google must allow third party billing systems to be provided and not stipulate that only Google Play’s billing system would be allowed to users in India.
Domestic start-ups are opposed to UCB in current form and allege that Google is looking through the UCB to push a payment policy that is in violation of the spirit of CCI order of October 25 last year. Domestic start-ups have entered into a big legal fight so as to ensure that Google puts its UCB on hold as they contend that tech giant charging a nearly 30 per cent service fee (basically commission) on app developers will prove to be a significant blow to the Indian start-up ecosystem.
It maybe recalled that the CCI had on October 25 last year imposed penalty of ₹936.44 crore on the tech giant for abusing its dominant position with regard to its Play Store policies. The CCI had also in its order directed Google to cease and desist from unfair business practices as well as carry out various measures to address the anti-competitive issues within a defined timeline.
