Google Faces Yet Another Antitrust Investigation In India Over Google Pay

India has recently opened an antitrust case against Google for allegedly exploiting its Google Play Store’s dominance in the world’s second-largest market for Internet users to unfairly promote its own payment app.

In a Monday’s announcement, the Competition Commission of India made public that it would investigate whether Google promotes the inclusion of Google Pay on Android smartphones and if phone vendors could avoid this option.

Another allegation to be reviewed is the claim that Google designs the billing system of the Play Store to the disadvantage of users and apps facilitating UPI payment.

There is also another allegation that claims in-app purchases are mandated to support Google Pay if developers want their apps to be listed on Google’s app store and the commission is also high.

An anonymous informant also accused Google of unfairly promotes its payment app in search of the Play Store. However, CCI won’t investigate this allegation citing a lack of evidence.

According to CCI, the informant pointed out the resemblance of Google’s conduct in Indian and Apple in Europe. Developers are mandated to use Google Play In-App Billing and Google Play Store’s payment system as a requirement for apps to be listed on Play Store. Like Apple, the search engine giant charges apps 30% for using the two payment methods listed above. The CCI’s director general is directed to complete the investigation within 60 days.

In answer to the allegations, Google said Android wasn’t the dominant operating system in India as it faced fierce competition from Oss on feature phones.

As stated in a report from Counterpoint – a research firm, 99% of smartphones in India are powered by Android. The search engine giant said the 30% cut wasn’t arbitrary. On the contrary, the commission is pro-competitive and legitimate as it allowed Google to pay for third-party fees and investments into the Play Store.

If Google is found to be guilty of these allegations, it has violated several provisions of India’s Competition Act.

Google Pay is now among the most common payment apps in India, along with PhonePe and Paytm. Last month, Google Pay and PhonePe processed around 40% of transactions on UPI – India’s most common solution for digital payment.

While Google Play Store allows a wide range of payment methods, including mobile wallets, UPI, Internet banking, and credit cards, the informant said UPI was more economical, secured, and convenient. So the market for apps supporting this method is separate as Indian users didn’t regard other methods as interchangeable with UPI apps.

India is Google’s largest market when it comes to the number of users. However, the search engine giant is facing a series of trouble in the country. Android’s dominance in the market has made life harder for many Indian startups. This is why many of them have formed a coalition to stand up against Google.

The backlash from the affected startups has caused the search engine giant to postpone the new Play Store billing rule. The claims the CCI is investigating are filed in February so it’s separated from the recent accusations.

Google said in a statement that it was glad CCI rejected many allegations made by anonymous informants. Regarding the ones that are still standing, the search engine giant expressed confidence that the watchdog would find Google Pay to operate in a competitive environment. The success of the app is driven by a secure and simple payment experience, according to Google.

It also said there were several other options for app distribution for Android apart from Play Store. Users came to Play because of its seamless, secure, and safe experience and the billing system of the platform helped to ensure that and the continuous investment to make sure developers are successful on the platform.

At the moment, Google is under fire for two other allegations, one over its abuse of Android in the smart TV market, and the other is that it uses Android OS to hamper competition in China.

>>> Google Faces Another Antitrust Case In India Over Its Abuse Of Power On Smart TV Market