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CCI denies relief to startups seeking restriction on Google payments policy: Details here

Competition Commission of India (CCI) dismissed interim relief applications from startups seeking to restrict Google from imposing a fee on developers as part of its updated payments policy.

Written By: Om Gupta New Delhi Published on: March 21, 2024 17:59 IST
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Competition Commission of India (CCI) dismissed interim relief applications from startups seeking a restriction on Google from imposing a fee on developers as part of its updated payments policy.

The Alliance of Digital India Foundation (ADIF), which represents thousands of homegrown startups, expressed its concern about the high commission being imposed on in-app purchases on the Google Play Store. It stated that these charges are not in the best interest of digital entrepreneurs in the country.

Prateek Jain, Associate Director, ADIF, said in a statement that these app store rates, ranging from 15 to 30 percent, are significantly higher. "The rates should be reconsidered and mutually favourable to both. This model will support the growth and sustainability of India's digital economy," Jain said.

"We trust the judicial process and await further hearings with the hope that the best interests of the Indian app development community will be prioritised by the Indian judiciary," Jain added. 

Earlier, the CCI said that it is of the view that "the informants have failed to meet the necessary criteria for grant of interim relief as propounded by the Supreme Court".

"The informants have not been able to project any higher level of prima facie case warranting a positive direction as sought for by the informants at the interim stage," read the CCI order.

The regulator last week ordered a probe into the Google Play Store, accusing the tech giant of exploiting its dominant position in the country's online market.

According to the Competition Commission of India (CCI), complainants have raised concerns about Google's recent payment policies, particularly regarding its app store, the Google Play Store. The complainants allege that these policies violate competition laws.

The commission has initiated an investigation based on initial findings that suggest Google has violated Section 4 of the Competition Act, which relates to the abuse of a dominant position. It is alleged that the payment policies are impacting various stakeholders, including app developers, payment processors, and users.

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Inputs from IANS

 

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