Google under CCI lens in India after payments complaints from Tinder-owner, startups

After some companies, including Indian startups and Tinder owner Match Group, alleged the Google service fee for in-app payments breaches an earlier antitrust directive, CCI has started to investigate the company.

Here is all you need to know regarding CCI's investigation in Google's new UCB system. (AFP)

Google is being probed in India by Competition Commission of India (CCI) after some companies alleged the service fee the U.S. firm charges for in-app payments breaches an earlier antitrust directive. The Competition Commission of India (CCI) on Friday issued an order stating "it is of the opinion that an inquiry needs to be made," a report by Reuters informed.

As per the information, Tinder-owner Match Group and Indian startups have asked the watchdog to investigate Google's new User Choice Billing (UCB) system, which they alleged was anti-competitive. Notably, the order is not public and Google did not immediately respond to a request for comment.

The CCI imposed a $113 million fine on Google in October and said it must allow the use of third-party billing and stop forcing developers to use its in-app payment system that charges commission of 15 percent-30 percent. Later Google began offering UCB to allow alternative payments alongside Google's when purchasing in-app digital content, but some companies complained the new system still imposes a high service fee of 11 percent-26 percent.

According to the report, this, Match and the Alliance of Digital India Foundation argued, meant Google had not complied with the earlier antitrust directive that ordered it not to impose any such "unfair and disproportionate" conditions.

In its order, the watchdog asked Google to explain certain provisions related to the in-app payment system before and after UCB and provide details of policies related to sharing of user and app developer data. Google needs to respond in four weeks, the order said.

Google has previously said the service fee supports investments in the Google Play app store and the Android mobile operating system, ensuring it distributes it for free, and covers developer tools and analytic services.

Apart from this the Brazil Supreme Court justice has also ordered investigation into executives at social messaging service Telegram and Google who are in charge of a campaign criticizing a proposed internet regulation bill.