Why has CCI fined Google again, this time for its Play Store policies?

Issuing a cease-and-desist order, the CCI directed Google to modify its conduct within a defined timeline. This includes allowing mobile app developers to use third-party payment services on its app store.

“Google has been given 30 days to provide the requisite financial details and supporting documents,” the CCI order said.

The CCI said Play Store policies require app developers to exclusively and mandatorily use Google Play’s billing system (GPBS) not only for receiving payments for apps and other digital products but also for certain in-app purchases. App developers cannot provide users with a direct link to a webpage containing an alternative payment method.

How has Google responded?

A Google spokesperson said “Indian developers have benefited from the technology, security, consumer protections, and unrivaled choice and flexibility that Android and Google Play provide”. In the statement, Google added: “And, 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.”

Why does Google and Apple prevent third-party payment options?

If users can pay developers via third-party options then Google and Apple will suffer in terms of the revenue they garner from their cut in app store and in-app sales. Now, this revenue share is upwards of 15% depending on the type of app and volume of sales.

Over the past year or so some developers have been pushing users on iOS and Android apps to get a better deal if they purchase via a third-party link to direct card payment to the developer. But this is not always favoured, as many users prefer the safety of using the in-app payment system than going to a separate link to make a payment. Google and Apple do underline this is exactly why they don’t want to offer other payment options.

Have other countries had issues with Google and Apple’s App Store policies?

Yes. In 2021, South Korea made it legally mandatory for both to open their app stores to alternative payment systems.

How have Indian developers reacted to app store policies?

In 2020, after Google said it would enforce its in-app payment method in India by September 2021, internet entrepreneurs and developers met with the government and pushed for a solution. Under pressure, Google said it would defer the enforcement of its rules in India until March 2022, later extending it to October 2022.