Google’s problems in India may increase in the coming days.
Google’s problems in India may increase in the coming days. Google’s billing system designed for app developers is unfair and discriminatory. The Competition Commission of India (CCI) in its investigation against Google has caught this flaw in the billing system. Based on this, the giant search engine Google can be fined in future. The CCI has come to this fact after a month-long investigation in this case. This investigation started on the complaint of the developers.
They allege that Google charged them unreasonably high fees for using the Android App Store and its proprietary payments services. According to CCI, Google’s practices are affecting other payment apps besides Google Pay. The market for UPI enabled digital payment apps is multi-sided and network effects could lead to a situation where Google Pay’s rivals may be out of the market in the long run.
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More than 200 startups have opened front against Google
More than 200 startup founders came together against Google and urged the government to stop Google from imposing heavy fees of 30 percent on smartphone app purchases. In a CCI report dated March 14, Google’s billing system has been described as unfair and discriminatory. Google typically charges 30 percent commission on more App Store purchases and subscriptions, but in recent years it has been reduced to 15 percent for media providers like Spotify. However, Spotify is also one of the companies complaining that it is unable to use its billing systems on mobile app stores.
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Fees had to be cut in South Korea
Google’s parent company Alphabet and Apple have been under increased regulatory pressure around the world. Both these giants are accused of forcing developers to use their payment systems and then get huge revenue from them. In South Korea, Google had to provide the option of a billing system after regulatory action in this matter. Google had to cut the fees of app makers by 4 percent.
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