India launches antitrust investigation into Google Pay and Play Store charges

The Competition Commission of India (CCI) has launched a formal investigation into Google for allegedly abusing its dominant position in the domestic market to stifle competition and unfairly promote its UPI payment app Google Pay. In an official statement released on Monday, the antitrust regulator announced whether Android devices will force users to install Google Pay during the phone’s setup process and whether Android vendors will pre-install the app on new smartphones. He said the investigation would focus on whether it would be enforced.

According to CCI, the study found that “Google, through its control of the Play Store and Android operating system (OS), favors Google Pay over other competing apps, to the detriment of both apps. In other words, apps that facilitate payments through Google Pay prioritize Google Pay.” UPI and users. According to the sources, this amounts to an abuse of a dominant position by Google in violation of various provisions of the Competition Act 2002. ”

The CCI is also investigating allegations that Google is forcing app developers to use its Play Store billing service, which charges a 30% commission on every transaction made on the platform. The regulator said Google’s actions “impose unfair and discriminatory conditions, deny market access to competing apps of Google Pay, and deny Google access to them, in light of the various provisions of Article 4.” He expressed his prima facie opinion that it corresponds to “. Law (2)” .

Following CCI’s press release, a Google spokesperson claimed that GPay operates in a competitive market and is popular due to its myriad features rather than any abuse of monopoly. Regarding the company’s Play Store billing practices, a spokesperson said: “Play’s billing system is a fundamental part of meeting this user expectation and helps ensure continued investment in the many important things needed to make developers successful. .”