The Indian Foundation (AdIF) digital alliance, a new Delhi tank consisting of entrepreneurs and startup, has transferred the Indian Competition Commission (CCI) to seek temporary assistance to the implementation of the Google Play Store commission until the investigation of the technological giant of the dominance abuse is complete.
The 30 percent Google Play Store commission in India will take effect on March 31, 2022. Adif confirmed the development for moneycontrol and said that the petition was submitted at CCI last week.
Email has been sent to Google at the same time and the story will be updated based on the response.
CCI petition.
According to Adif, this assistance has been sought in the name of the application developer because Google’s new policy will limit certain application categories to only use the Google (GBS) bill system to receive payment.
This will be a problem for application developers because GBS collects a 30% percent commission for all transactions on the Google Play Store, compared with 2% charged by other payment processing systems. There are strong cases to seek help like this as this new policy, when it comes in force in March, will have a destructive effect on the operating margin of a large number of startups and make their business models worthy, “Adif said in a statement.
CCI has been in November 2020 directing investigations into the issue of compulsory use of the Google Play Store payment system for purchasing applications & applications in the application. This commission from the prime view of Facie that such a policy is unfair because it limits the ability of the application developers to choose their choice of payment processing system.
“Google’s new policy will exclude payment service providers that compete from the market for payment of digital goods consumed through Android devices,” said the statement.
According to Sijo Kuruvilla George, Executive Director, Adif if the status quo is not maintained after completing the settlement of the question, Google will enforce its provisions in the Play Store in March 2022, which leads to the initial consequences of India for the Indian startup ecosystem.
CCI investigations experience abuse to dominate
This development came shortly after the Times of India reported that the CCI investigation arm was found in his investigation that Google misused the dominant position of the Android operating system in the country to hurt illegal competitors. CCI has ordered an investigation into the alleged Google suspected as Android in India in 2019. Android Powers 98 percent of smartphones in this country, according to certain matches. Technology giants say they have not received or review this report.
After this, Google has taken CCI to court for the “leakage” of the interim confidential report regarding the ongoing investigation into the company’s Android smartphone agreement on September 23. This case was dismissed a few days later, with CCI approved the company’s request. to maintain confidential information during the investigation.
While Google has always collected a 30 percent commission for applications that sell digital goods in their application stores, said the company in October last year that it would be more proactively uphold this commission starting September 30, 2021. once noted that these changes were expected to have an impact on. Less than 3% of applications in the Play Store that currently does not use the company billing system
However, following the massive encouragement of the Indian developer community, the technology giant postponed implementation until March 2022. It also reduces the commission rate to 15 percent for the first $ 1 million income developer to earn uses a play billing system every year in 2021.
Play the Store Commission
Google and Apple also do not allow other payment options for purchases in the application “clearly they exceed the boundaries with the 30 percent commission, which is not a lot of happy and fair people, the commission is damaged,” Amit Ranjan, Lisur, Slideshare and Architects, said Project DigiLocker .
