India orders Google to allow third-party payments, slaps another fine

NEW DELHI: Alphabet Inc’s Google should not restrict app developers from using third-party billing or payment processing services in India, the country’s antitrust body said on Tuesday, as it fined the US giant $113 million for anti-competitive practices.

The Competition Commission of India (CCI) said Google used its “dominant position” to force app developers to use its in-app payment system, noting the sale of in-app digital goods is a key means for developers to monetize their work.

The CCI’s move is the latest setback for Google in one of its priority markets, where it was fined another $162 million by the watchdog on Thursday for anticompetitive practices related to its Android operating system, and was asked to change its approach to its Android platform. Google did not respond to a request for comment. The US giant can appeal the orders in an Indian tribunal.

Other than the fine, Google was asked to adopt 8 remedies or operations adjustments within three months, including not restricting “app developers from using any third-party billing/ payment processing services, either for in-app purchases or for purchasing apps,” the 199-page CCI order said.

Google should ensure complete transparency in communicating with app developers and details about service fees charged, the CCI order added.

The order would come as a major relief for Indian startups and smaller companies that have long objected to Google’s policy of mandatorily imposing use of its own payments system on app developers. The investigation into Google’s payment ecosystem was started in 2020, after an antitrust case was filed against Google. The watchdog kept the identity of the complainant confidential on his request.