Indian Startups Demand Probe on Google for Bypassing Antitrust Directive, Charging High Service Fee

Google faces other regulatory challenges in India, including a recent setback that forced it to change how it markets its Android system.

Advertisement
By Reuters | Updated: 6 April 2023 18:20 IST
Highlights
  • Google start offering User Choice Billing (UCB) for alternative payments
  • Google counts India as a key growth market
  • Google faces other regulatory challenges as well in India

The Competition Commission of India (CCI) in October imposed a $113 million fine on Google

Photo Credit: Reuters

Top startups in India have called on the country's competition watchdog to launch an inquiry into Alphabet's Google for allegedly bypassing an antitrust directive by charging a high service fee for in-app payments, a filing shows.

The Alliance of Digital India Foundation (ADIF) filing marks the latest tussle between Google and Indian startups, which have repeatedly criticized the U.S. company for imposing unfair business restrictions that hurt smaller players.

Advertisement

"Google's policy change of charging service fee even on transactions processed by third-party payment processors ... has detrimental consequences for users and app developers," the 15-page confidential March complaint by ADIF said.

Google, which declined to comment, 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 Competition Commission of India (CCI) in October imposed a $113 million (roughly Rs. 9,25,357,000) fine on 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 a commission of 15 percent-30 percent.

Google later decided to start offering User Choice Billing (UCB) for allowing alternative payments alongside Google's when purchasing in-app digital content, but the ADIF said in its filing that this new system imposes a "service fee".

Advertisement

"The app developers will have to pay 1-3 percent for alternate payment service providers and 11 percent/ 26 percent to Google, which makes the entire ecosystem unsustainable," it said.

Details of the ADIF filing, which was reviewed by Reuters on Thursday, have not previously been reported. ADIF and the CCI did not respond to requests for comment.

Advertisement

Google, which counts India as a key growth market, faces other regulatory challenges, including a recent setback that forced it to change how it markets its Android system.

In its October order, the CCI said Google abused its market position and its mandatory imposition of the proprietary payment system hurts the ability of payment processors and app developers to undertake technical development and innovate.

Advertisement

Google has challenged this in an Indian tribunal.

ADIF, which represents Indian startups including digital payments firm Paytm and social media app ShareChat, in its March complaint, alleged that Google was using the new service fee system to bypass the antitrust directive that ordered it not to impose any "unfair and disproportionate" conditions.

"The policy of UCB is unfair and the same would lead to unjust enrichment to Google," the filing said. 

© Thomson Reuters 2023


Smartphone companies have launched many compelling devices over the first quarter of 2023. What are some of the best phones launched in 2023 you can buy today? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Google, Alphabet, ShareChat, Android
Advertisement

Related Stories

Popular Mobile Brands
  1. Vivo T6 LIte and iQOO Z12 Lite Show Up on Bluetooth Certification Website
  2. Redmi M100 Pro Debuts With MediaTek Dimensity 7300-Ultra SoC
  3. You Can Now Access PF Balance, Passbook Details Through WhatsApp
  4. OnePlus Buds Pro 4 Features Officially Revealed Ahead of Launch
  5. Amazon Great Indian Festival Diwali Sale: Deals on Samsung Phones, iPhones
  1. Sony FX5 Cinema Line Camera Launched in India With Open Gate Recording, 5K Video Support: Price, Specifications
  2. Google Pay Introduces Discover Shop With AI Virtual Try-On, Visual Search in India
  3. Nvidia GeForce Now Introduces 4-Month Plans in India at Lower Prices
  4. Uniswap Could Benefit From Binance Hack as Standard Chartered Eyes DEX Growth
  5. Binance Resumes USDT, USDC, ETH and BNB Withdrawals as Trump Addresses Situation
  6. Pebble Qore Vox Launched in India as Firm’s Latest Screenless Fitness Tracker With AI Voice Recording Capabilities: Price, Features
  7. WhatsApp Introduces Smart Text Actions on Android and iOS: Report
  8. Amazon Great Indian Festival Diwali Edition Sale: Best Deals on Samsung Smartphones, iPhones
  9. HomeView to Double as Apple’s HomeKit Security Camera, Receive Dedicated Claude and ChatGPT Apps Soon, Tipster Claims
  10. Samsung Galaxy S27 Pro, Galaxy S27 Ultra Tipped to Feature Upgraded Privacy Display Technology
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.