CCI turns down interim order restricting Google from charging its service fee on apps

The Competition Commission of India (CCI) on Wednesday dismissed an interim relief order that would stop search giant Google from levying service fees on app developers until the regulator takes a final call in this regard.

The CCI said the Director General (DG) would continue its investigation as ordered by the commission in its March 15 order, Business Standard reported. 

Last Friday, CCI ordered a probe into Google's Users Choice Billing system over the Play Store policies. The commission observed that it is of the prima facie view that Google has violated the provisions of Section 4(2)(a), Section 4(2)(b), and Section 4(2)(c) of the Act, as elaborated as supra, which warrants detailed investigation into the matter.

The Commission's investigative arm has been mandated to complete the probe within a 60-day timeframe.

The Commission on Wednesday said: “The Commission is of the considered opinion that no case whatsoever has been made out by the informants which warrant the grant of interim relief. Resultantly, the applications stand dismissed.” 

The CCI said that while there might be concerns about the fairness of Google’s fee structure, it was essential to recognise the costs and responsibilities associated with maintaining and operating app stores.

The plea was submitted by People Interactive India, which represents brands such as Shaadi.com, and Sangam.com, and Mebigo Labs Pvt Ltd, which owns the brand Kuku FM along with the Indian Broadcasting and Digital Foundation (IBDF) and the Indian Digital Media Industry Foundation (IDMIF).

The order further said: “While it is essential to ensure a level playing field and protect competition within the app store market, any measures taken should be proportionate and carefully crafted to minimise unintended consequences and preserve the overall integrity and functionality of the platform ecosystem.”

Last week, the CCI observed: "In view of the foregoing, the Commission is of the prima facie view that Google has violated the provisions of Section 4(2)(a), 4(2)(b) and 4(2)(c) of the Act, as elaborated supra which warrants detailed investigation. Accordingly, the Commission directs the Director General ('DG') to cause an investigation to be made into the matter under the provisions of Section 26(1) of the Act. The Commission also directs the DG to complete the investigation and submit a consolidated investigation report within a period of 60 days from the date of receipt of this order."

Responding to the case, a Google said: "The CCI has previously examined our service fee in detail between 2020 and 2022 and found no illegality. However, we take our commitment to comply with local laws and regulations in India seriously and will cooperate with the process in every way."

The contention between app owners and Google started earlier this month when the search giant delisted apps such as Bharat Matrimony, Telugu Matrimony, Tamil Matrimony, Marathi Matrimony, Matrimony.com’s Jodii, Shaadi.com, dating apps Truly Madly and QuackQuack. The dispute is over a service fee of 11-26 per cent that the tech giant charges from select developers who use the in-app billing services.