CCI starts probe into Google's Users Choice Billing system

CCI stated that on initial examination, Google appears to have breached the regulations outlined in the Competition Act.

The CCI has directed the director general to conduct a thorough investigation and deliver a report within 60 days.

In a note, CCI said, "In view of the foregoing, the Commission is of the prima facie view that Google has violated the provisions of Section 4(2)(a), 4(2)(b) and 4(2)(c) of the Act, as elaborated supra which warrants detailed investigation. Accordingly, the Commission directs the Director General ('DG') to cause an investigation to be made into the matter under the provisions of Section 26(1) of the Act. The Commission also directs the DG to complete the investigation and submit a consolidated investigation report within a period of 60 days from the date of receipt of this order."

A few days back, in March, Google removed apps from the Play Store developed by 10 companies, citing alleged non-compliance with its Users Choice Billing (UCB) system.

The affected apps included Shaadi, Bharat Matrimony, Balaji Telefilms' Altt (formerly ALTBalaji), Kuku FM, Quack Quack, Naukri.com, and 99 Acres, all under the Info Edge group.

Shortly afterwards, Google and Indian app developers reached an agreement to pause their disagreement over the significant billing policy for four months.

Under Google's Play Store policies, a fee of 15-30 percent is imposed on in-app purchases and subscriptions for users utilizing Google's billing system.

However, developers opting for third-party billing options pay a commission ranging from 11-26 percent, reflecting a reduction of 4 percent on the service fee.