Google files writ in Karnataka HC against CCI's probe into Play Store rules

CCI has been probing charges of Google's allegedly heavy commission on app developers for in-app purchases and paid apps

Tech major Google on Monday filed a writ petition in the Karnataka High Court, seeking more time to respond to queries of Competition Commission of India (CCI) on a probe into the use of Google’s Play Store payment system for in-app purchases and paid apps.

Earlier this month, Google had extended the timeline for developers to integrate with the Play store's billing system to October 31 2022, which is one of the reasons for seeking more time.

In a statement, a Google spokesperson said: “We have filed a writ in Karnataka High Court regarding the interim relief application in the Google Play probe by the CCI, seeking to move forward in line with established due process principles. We respect the CCI’s investigative process and will continue to engage cooperatively and constructively in the interest of a fair investigation”.

According to sources, the company has asked for the identity of the complainant to be disclosed to respond adequately to the questions, as well the appointment of a judicial member on the panel.

While extending the deadline to comply with the changes in Play Store payment system, the company had then said: “We recognize the unique needs of the developer ecosystem in India and remain committed to partnering with developers in India on their growth journey. In October 2020, we had announced 31st March 2022 as the timeline for developers in India to integrate with Play’s billing system. We are extending this to 31st October 2022 to provide developers in India the required product support for recurring payments through convenient user payment systems, including UPI and wallets, and also provide them more time in light of the changes to India’s recurring digital payments guidelines”.

The Alliance of Digital India Foundation (ADIF) had filed the plea for interim relief from Google’s updated payment system with CCI on October 6.

Meanwhile, ADIF termed the writ petition of Google yet another delay tactic and an attempt to frustrate the antitrust process. “The only commitments that have been consistent on the part of Google throughout this entire antitrust process has been their commitment to a) delay the process in every way possible and b) protecting their super profits from the app economy (by) abusing its dominance. We exhort Google to comply with the antitrust process in good faith and as per the directives of the CCI,” said Sijo Kuruvilla George, the executive director, ADIF.

The CCI had in 2020 directed a probe into Play Store’s payment system. As part of the probe, it had asked Google to respond to its queries by November 19, 2021. The US internet giant had then asked for eight weeks’ time to respond.

Since then, Indian start-ups and unicorns have been claiming that Google abuses its monopoly, enforces the billing system and takes a 30 per cent commission on transactions. All apps distributed on the Google Play Store, that offer in-app purchases of digital goods, need to use Google Play’s billing system.

Both Google and Apple Stores have been facing backlash from developers in several geographies over their business practices on their app stores.

In October this year, Google had said that starting January 1 2022, it will decrease the service fee for all subscriptions on Google Play to 15 per cent from 30 per cent, and for developers offering subscriptions, this means that first-year subscription fees will be cut in half.

• 2020:Google says apps that sell digital goods within the Play Store have to use its billing systems where it charges commission of 30%.

• CCI receives anonymous complaint against Google; Nov 2020 CCI initiates an investigation against Google

• March 2021: Google slashes fee by 15% for developers globally when they make the first $1mn in annual revenue.

• Oct 2021: ADIF files an interim relief before CCI to injunct Google from implementing the new payment rules

• Oct 2021: Google extends the deadline for implementing the new policy in India till March 31, 2022