According to a regulatory order seen by Reuters on Friday, India’s competition authority is investigating Google’s in-app payment service fee, which some companies claim violates an antitrust guideline.
Tinder-owner Match Group (MTCH.O) and Indian startups requested the watchdog to probe Google’s (GOOGL.O) new User Choice Billing (UCB) scheme, which they claimed was anti-competitive.
Friday’s Competition Commission of India (CCI) judgment stated, “it thinks that an inquiry needs to be made.” Google did not immediately comment on the injunction, which is private.
In October, the CCI fined Google $113 million and ordered it to allow third-party billing and stop pushing developers to utilize its 15%-30% commission in-app payment scheme.
Google eventually added UCB to allow alternate payments for in-app digital content. However, several companies complained about the exorbitant “service fee” of 11%-26%.
Match and the Alliance of Digital India Foundation contended that Google had violated the earlier antitrust guideline by imposing “unfair and disproportionate” criteria.
The watchdog ordered Google to clarify its user and app developer data-sharing policy and the in-app payment mechanism before and after UCB. The order gave Google four weeks to respond.
Google has said the service fee supports investments in the Google Play app store and Android mobile operating system, assuring free distribution, and covers developer tools and analytic services. The company, which considers India a major growth region, confronts other regulatory obstacles, including a setback that compelled it to modify its Android system marketing.
