India’s competition watchdog has initiated an inquiry into the in-app payment service fees charged by Google following complaints filed by some companies alleging a violation of a previous antitrust directive. The Match Group, which owns Tinder, and various Indian startups have requested that the watchdog investigate Google’s User Choice Billing (UCB) system, which they claim is anti-competitive. In response, the Competition Commission of India (CCI) issued a non-public order on Friday, calling for an inquiry to be conducted regarding Google’s in-app payment service fees. The CCI had previously imposed a $113 million penalty on Google last October, mandating that the tech giant permit third-party billing and end the practice of compelling developers to use its in-app payment system that charged commissions ranging from 15 percent to 30 percent. Google introduced the UCB system in response, which allows users to choose alternative payment methods alongside Google’s for purchasing in-app digital content. However, some companies have lodged complaints, claiming that the new system still imposes a significant “service fee” ranging from 11 percent to 26 percent.

According to the Match Group and the Alliance of Digital India Foundation, Google’s action of continuing to impose a “service fee” ranging from 11 percent to 26 percent via its UCB system indicates non-compliance with the prior antitrust directive. The competition watchdog has requested that Google clarify specific provisions linked to its in-app payment system before and after the introduction of the UCB system, as well as provide information on the policies governing the sharing of user and app developer data. Google has been given four weeks to respond to the order. The tech giant regards India as a crucial growth market; however, it faces additional regulatory hurdles, such as a recent setback that forced it to modify how it promotes its Android system. The in-app payment service fee is necessary to support investments in the Google Play app store and the Android mobile operating system, allowing them to be distributed for free while also covering expenses related to developer tools and analytics services. Google has yet to respond to the recent inquiry by the CCI.

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