Indian startups up in arms against Google for charging high service fees

Match Group and Indian startups have jointly filed a complaint with the Competition Commission of India (CCI) against Google for allegedly violating an antitrust directive by charging high service fees for in-app payments, Reuters news report said.
Google South KoreaGoogle’s policy of charging a service fee on transactions processed by third-party payment processors has negative consequences for both users and app developers, according to a 15-page complaint filed by Alliance of Digital India Foundation (ADIF).

The complaint alleges that the new User Choice Billing (UCB) system, which allows alternative payments alongside Google’s in-app payment system, still imposes a service fee that makes the entire ecosystem unsustainable.

In October 2020, the CCI imposed a $113 million fine on Google and ordered it to 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 introduced the UCB system, which ADIF claims it still imposes a service fee. In its filing, Match asked the CCI to direct Google not to collect or impose any commission or service fee, including via user choice billing, as the system is anti-competitive.

Google has faced several regulatory challenges, including a ruling by the CCI that it abused its market position and its mandatory imposition of the proprietary payment system limited the scope of payment processors and app developers for technical development and innovation.

Google has challenged this ruling in an Indian tribunal. ADIF, which represents Indian startups such as Paytm and ShareChat, alleges that Google’s new service fee system is a way to bypass the antitrust directive.

Related News

Latest News

Latest News