India slaps $162 mn fine on Google, orders it to allow third-party payments
A man walks past the sign of "Google for India"
The Indian antitrust body decided on Tuesday that Alphabet Inc.'s Google shouldn't prevent app developers in India from utilising third-party billing or payment processing services. It also fined the American company $113 million for anti-competitive behaviour, just days after slapping it with a similar penalty.
The selling of in-app digital products is a crucial way for developers to monetise their work, according to the Competition Commission of India (CCI), which claimed Google used its "dominant position" to coerce app developers to utilise its in-app payment system.
The CCI's action is Google's most recent setback in one of its target markets, where it was also fined $162 million on Thursday for engaging in anti-competitive behaviour in relation to its Android operating system and instructed to modify its strategy.
A Google spokesperson said, "By keeping costs low, our model has powered India's digital transformation and expanded access for hundreds of millions of Indians".
"We remain committed to our users and developers and are reviewing the decision to evaluate the next steps."
The 199-page CCI judgement stated that Google also had to implement 8 corrective measures or operational changes within three months, including not prohibiting "app developers from using any third-party billing/payment processing services, either for in-app transactions or for purchasing apps."
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The CCI stated that Google should make sure to maintain complete transparency when dealing with app developers and providing information about service prices.
For Indian startups and smaller businesses who have long protested Google's policy of requiring app developers to utilise its own payment system, the order would be a huge relief.
2020 saw the beginning of the Google payment ecosystem inquiry following the filing of an antitrust lawsuit against the company. On the complainant's request, the watchdog maintained his anonymity.
(with inputs from agencies)