CCI begins inquiry against Google over anti-competitive in-app payment fees

According to a media source, Indian competition watchdog, the Competition Commission of India (CCI) has started an inquiry into Google after some companies alleged the service fee charged by the company for in-app payments breaches an earlier antitrust directive.

Tinder’s parent company, Match Group has requested the watchdog to investigate Google's new User Choice Billing (UCB) system, which they alleged was anti-competitive.

CCI issued an order stating "it is of the opinion that an inquiry needs to be made."

Google faces a fine of $113 million by CCI in October and the watchdog said that 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.

CCI in its order asked for an explanation of 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 needs to respond in four weeks, the order said.