Google under CCI lens, orders probe against Google Pay

The Competition Commission of India (CCI) ordered a detailed probe against Google for ‘abuse’ of its dominant position, primarily with regard to its digital payments application Google Pay (GPay).

The order follows a complaint by an ‘informant’ alleging multiple instances of abuse of dominant position by Google, with CCI deciding to carry forward the investigation into two of these instances — pre-installation of GPay on Android OS smartphones and use of Google Play’s in-app billing as the method of payment by developers.

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“The Commission is of the prima facie view that the opposite parties have contravened various provisions of Section 4 of the Act. These aspects warrant a detailed investigation,” the order said. Section 4 of the Competition Act pertains to abuse of dominant market position.

The Commission has directed the Director General to finish the probe and submit the report in 60 days.

This comes at a time when Paytm, along with several other Indian start-ups, have been rallying against the U.S.-based tech giant’s requirement that apps use the Play Store’s billing system for in-app purchases of digital goods and pay a 30% transaction fee.

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