India's competition watchdog has begun an inquiry into Google after some companies alleged the service fee the U.S. firm charges for in-app payments breaches an earlier antitrust directive, a regulatory order seen by Reuters showed on Friday.
The Competition Commission of India on Friday issued an order stating "it is of the opinion that an inquiry needs to be made."In October, the CCI imposed aon Google and said it must allow the use of third-party billing and stop forcing developers to use its in-app payment system that charges commission of 15%-30%.
Google later began offering UCB to allow alternative payments alongside Google's when purchasing in-app digital content, but some companies complained the new system still imposes a high "service fee" of 11%-26%. This, Match and the Alliance of Digital India Foundation argued, meant Google had not complied with the earlier antitrust directive that ordered it not to impose any such "unfair and disproportionate" conditions.
In its order, the watchdog asked Google to explain certain provisions related to the in-app payment system before and after UCB and provide details of policies related to sharing of user and app developer data.Google has previously said the service fee supports investments in the Google Play app store and the Android mobile operating system, ensuring it distributes it for free, and covers developer tools and analytic services.
The company, which counts India as a major growth market, faces other regulatory challenges, including a setback that
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