According to the new Google Play Store billing policy, the app developers in Play Store, will be charged 15 per cent of the commission for either the purchase of the app or other digital transactions such as the purchase of tokens
The competition commission of India is likely to pass a verdict soon on the probe for the new Google Play Store Billing policy, which the company introduced in 2020, along with allegations of monopolizing the digital payment for app purchases via the Play Store. In India, the new Google Play Store billing policy will be introduced beginning October 31 this year.
As per the report by The Economic Times, over the past few months, the CCI, after having discussed the issue with several industry leaders and app developers, is planning to release the final report before October 31. In March this year, the antitrust body termed the new billing policy to be “unfair and discriminatory.”
According to the new Google Play Store billing policy, the developers, and Play Store apps, will be charged 30 per cent of the commission for either the purchase of the app or other digital transactions such as the purchase of tokens. In 2021, the company reduced the commission to 15 per cent. However, industry leaders and start-ups say that the fee is still high for small business owners.
The tech giant is also facing investigation for allegations of monopolizing the digital payment system by promoting Google Pay over other digital payment apps for transactions over the Play Store. As per another report by The Economic Times, investigations revealed the tech giant not using its Google Billing Payment System (GBPS) for some of its own apps, which the company has made mandatory for other app developers. The tech giant has also been alleged to not allow negotiations on pricing for app developers as well as not providing access to other digital payment apps for processing payments for in-house purchases, according to the report.
In December, Google approached Karnataka High Court citing that it requires more time to respond to CCI’s questions. Following this, CCI said that it will complete the investigation within 60 days.