Following a decision by the Competition Commission of India (CCI), Google has halted the implementation of its policy requiring app developers to utilise its Google Play billing system for in-app purchases. The business stated that it is exploring its “legal alternatives” in order to “continue to invest in Android and Play.” The previous deadline for complying with the tech giant’s regulation was October 31.
“Following the CCI’s recent ruling, we are pausing enforcement of the requirement for developers to use Google Play’s billing system for the purchase of digital goods and services for transactions by Indian users while we review our legal options and ensure we can continue to invest in Android and Play,” Google said in a support page.
In two separate cases last month, the CCI issued directives and penalties to Google. One of these was a Rs 936.44 crore fine imposed on the firm for abusing its dominant market position in relation to its Play Store policy. The watchdog issued a cease-and-desist order and urged the tech company to change its behaviour within a certain time frame, including enabling mobile app developers to use third-party payment services on its app store.
According to CCI, Play Store standards require app developers to use Google Play’s billing system (GPBS) not only for app and other digital goods payments but also for specific in-app transactions. Furthermore, app developers may not provide users with a direct link to a webpage featuring an alternative payment option within an app, nor may they use wording that encourages a user to purchase the digital item outside of the app.
If app developers do not comply with GPBS, they will be denied access to the Play Store and will lose access to a large pool of potential clients in the form of Android users. “Making access to the Play Store contingent on required GPBS usage for premium apps and in-app purchases is one-sided and arbitrary, with no valid economic interest.” The app developers are “deprived of the inherent right to utilise payment processors of their choice from the open market,” according to the CCI.
Previously, the antitrust regulator fined Google Rs 1,338 crore for abusing its dominant position in numerous categories relating to the Android mobile device ecosystem in India.
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