India's competition regulator is fining Google $113 million over anti-competitive practices with its app store Google Play, according to a press release from the Competition Commission of India. Specifically, authorities in India believe app developers should be allowed to use the payment processors of third parties rather than being forced to use Google.
Google requires app developers to use the Google Play Billing System to receive payments both for paid apps and in-app purchases, something the Competition Commission of India has ordered Google to stop doing within the next three months.
"Making access to the Play Store dependent on mandatory usage of GPBS for paid apps and in-app purchases is one-sided and arbitrary and devoid of any legitimate business interest. The app developers are left bereft of the inherent choice to use payment processor of their liking from the open market," the Competition Commission of India said in a statement published online Tuesday. The regulator also expressed concern over Google's so-called "anti-steering" rules, which ban app developers from directing potential customers to a third-party website for payment. Doing so is against Indian law, according to the regulator. "Indian developers have benefited from the technology, security, consumer protections, and unrivaled choice and flexibility that Android and Google Play provide," a Google spokesperson told Gizmodo via email Wednesday morning.
"And by keeping costs low, our model has powered India's digital transformation and expanded access for hundreds of millions of Indians. We remain committed to our users and developers and are reviewing the decision to evaluate the next steps." As the BBC notes, Google was hit with a $161 million fine just last week from the same regulator in India for abusing market dominance with its Android operating system. Payment systems are a contentious issue in tech, with Apple releasing new App Store rules this week demanding a cut of social media post promotions and any NFT sales through web3 apps—an announcement that wasn't well received in the blockchain community. Apple takes a 30% commission from all app sales across its platform.
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