Earlier this month, India’s competition regulator accused Google of misusing its dominant position on the Play Store to force app developers to use its in-app payment system, and was slapped with a fine of Rs. 1337 crores- the equivalent of $161.95 million. Now, the search giant has received another hefty fine for the very same reason. Here are the details.
In its second ruling against Google in less than a week, India’s Competition Commission on Tuesday fined the Mountain View giant Rs 936.44 crore (around $113.04 million) for abusing its dominant position with respect to its Play Store policies. The regulator has also directed the company to cease and desist from unfair business practices within a defined timeline, as well as take various steps to address anti-competitive issues.
For the uninitiated, Google Play Store policy states that app developers should only use Google Play’s Billing System (GPBS) to accept payments for apps distributed or sold through the Play Store and for in-app purchases. The company restricts app developers from using any third-party billing or payment processing services, either for in-app purchases or for purchasing apps.
The regulator’s order says, “Google has perpetuated its dominant position in the online search market, resulting in the denial of market access for competing search apps in contravention of Section 4(2)(c) of the Act. Google has leveraged its dominant position in the Play Store to protect its dominant position in online general search, in contravention of Section 4(2)(e) of the Act.”
In response, a Google spokesperson on Wednesday said, “We remain committed to our users and developers and are reviewing the decision to evaluate the next steps,” as per a tweet by ANI.
“Indian developers have benefited from the technology, security, consumer protections, and unrivalled choice and flexibility that Android and Google Play provide. By keeping costs low, our model powered India’s digital transformation and expanded access for hundreds of millions of Indians,” the spokesperson added.
RELATED:
