Bengaluru, NFAPost: Technology behemoth Google faces probe for allegedly misusing its dominant position to force app makers to exclusively use its billing system for in-app purchases and for bundling the search giant’s payments app with Android smartphones sold in India.
The uprising against Google comes in the backdrop of the renewed doubt raised by various global government and opinion makers on the impact of dominance of Big 5, including Google.
According to the statement issued by the Competition Commission of India, thhe Commission is of the prima facie view that the opposite parties have contravened various provisions of Section 4 of the Act.
“These aspects warrant a detailed investigation. The Commission is of the prima facie view that said conduct of Google amounts to imposition of unfair and discriminatory condition, denial of market access for competing apps of Google Pay and leveraging on the part of Google, in terms of different provisions of Section 4(2) of the Act,” it added further.
Section 4 of the Competition Act pertains to abuse of dominant market position. The Director General has been directed by the Competition Commission of India (CCI) to finish the probe and submit the report in 60 days.
Paytm, along with several other Indian start-ups, have been rallying against Google’s requirement that apps use the Play Store’s billing system for in-app purchases of digital goods and pay a 30% transaction fee.
Google payment system
On the other hand speaking about Google Pay’s payment system the Commission in its order report noted, it is of prima facie view that mandatory use of application store’s payment system for paid apps and in-app purchases restricts the choice available to the app developers, especially considering when Google charges a commission of 30% (15% in certain cases) for all app purchases. It added that such ‘allegedly’ high fee would increase the cost of Google’s competitors.
Similarly, on the issue of pre-installation and prominence of Google Pay on Android Smartphones, the Commission agreed with the contention of the informant and said that it was prima facie of the view that the alleged conduct on the part of Google merit detailed investigation.
The US Justice Division introduced an antitrust lawsuit towards Google, alleging that each advertisers and persons are harmed by the tech large’s place as “the unchallenged gateway to the Web for billions of customer’s worldwide.” The feedback came on the backdrop of the allegation.
As pressure mounted on competitive landscape and questions on data privacy, the Senate Commerce Committee, earlier this week had grilled the CEOs of Twitter, Fb and Google over proposed modifications to Part 230 of the Communications Decency Act.
The US Regulatory hurdles
Addressing the regulatory considerations, Google and Alphabet CEO Sundar Pichai mentioned that the place there may be suggestions or rulings; the corporate can be versatile and adapt. Pichai additionally addressed the problems flagged within the lawsuit filed by DOJ which alleged that Google weaponries its dominance in on-line search and promoting to kill off competitors and hurt shoppers.
Google and Alphabet CEO Sundar Pichai mentioned that removed from harming shoppers, the intention was to make Google’s companies accessible to everybody. The DOJ lawsuit has additionally introduced into focus Google’s partnership with different corporations.
Now it is interesting to note how these big 5 will behave as responsible corporates going forward. Also, time has come for them to behave responsibly to set new standard by talking to global innovation ecosystem, various stakeholders and society at large.
