New Delhi: Google is facing renewed scrutiny from the Competition Commission of India (CCI) over allegations of unfair pricing practices. The watchdog has initiated an investigation into Google’s pricing model, accusing the tech giant of leveraging its market dominance to implement discriminatory pricing policies.
According to the CCI’s order, Google’s pricing policies on its app marketplace, Google Play, discriminate between physical and digital services. While certain apps offering services like food delivery or ride-hailing are exempt from fees, digital services such as dating or music streaming platforms are subjected to significant charges ranging from 11% to 30%.
This investigation follows previous rulings by the CCI against Google, including fines totaling ₹2,273.44 crores ($274 million) for anti-competitive practices related to its Android mobile operating system and the Play store. Google has contested these fines.
The CCI’s latest order raises concerns about the imbalance in bargaining power between Google and app developers, highlighting the potential stifling of innovation and increased operational costs for developers. The commission also questions the proportionality of Google’s revenue share, suggesting an abuse of its dominant position in the market.
Anupam Mittal, founder of People Group, welcomed the CCI’s decision, emphasizing its significance for the internet industry. Meanwhile, Google has expressed its commitment to cooperating with the investigation while maintaining its compliance with local laws.
The CCI’s probe comes amidst a broader debate about Google’s policies, with recent actions such as the suspension of numerous apps and meetings with government officials further fueling the discussion. However, the Supreme Court’s refusal to issue an injunction against Google’s service fees indicates that legal avenues for intervention remain uncertain.
