Most phones that Indians buy apart from an iPhone are driven by Google’s Android operating system, and this opens a door for every app created by the tech giant to flood the screen. From Google being the default search to Gmail being the dominant email app, the device is an ecosystem of the internet firm the moment it’s set up. But India’s competition watchdog CCI has now intervened to curb Google’s almost monopolistic grip over the market, and has also penalised the firm.
Google's answer to the setback
The company responded by citing the security and flexibility along with services that developers in India receive at lower costs, before adding that the firm is committed to users in the country. It will now review the order before taking further steps.
Using its reach to arm-twist developers?
Although Google has been synonymous with online search for as long as most of us know, the Competition Commission of India had previously flagged how it was pushed as the default engine on Android phones. Now Google has been pulled up for mandating use of its payment system by developers for facilitating in-app purchases and payments for platforms. The firm has also been slapped with a Rs 931 crore find, along with an order to allow third-party payments.
Double standards while cashing in on dominance
Gpay is one of the most commonly used app when you scan a QR code for payments at shops or restaurants, but Google forces app developers to use that in its digital marketplace. This condition has been deemed unfair by the competition watchdog, and also one that stifles innovation in the payment app space. Although Google has allowed a select few, such as Spotify, to have their own payment system within Play Store, there are many developers who still can’t use alternatives to Gpay.
The authorities also noted how Google doesn’t enforce such payment practices for YouTube, where other methods can be used. They mentioned that this was discriminatory in nature, and also instructed Google to have a transparent data policy while making sure that consumer information won’t be used for its own competitive advantage.
Not a first for Google
Google had even been called out when it had imposed a 30 per cent commission on subscriptions renewed through Play Store. It later slashed the levy to 15 per cent and a report by Economic Times suggests that Indian apps offering videos, music or books might soon pay only 6 per cent.
Speaking of past incidents, Google was fined Rs 1,337 crore by CCI, after a complaint against making its search engine the default option on Android phones.
