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Breaking news: Competition Commission of India has ordered an investigation into dominance by @GoogleIndia , especially looking into @GooglePayIndia .
This follows a major pushback by Indian founders against the 30% "tax" by Google on Indian companies.
A thread by @nixxin
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This follows a major pushback by Indian founders against the 30% "tax" by Google on Indian companies.
A thread by @nixxin
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The CCI investigation will look into 4 aspects of dominance by Google:
1. Exclusivity Regarding Mode of Payment for Purchase of Apps and In-App
Purchases (IAPS).
This is a major issue, because the Google Play store is imposing Google's payment gateway on apps, and then
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1. Exclusivity Regarding Mode of Payment for Purchase of Apps and In-App
Purchases (IAPS).
This is a major issue, because the Google Play store is imposing Google's payment gateway on apps, and then
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taking a 30% commission from all apps. This was the issue that got Indian founders to push back against Google earlier last month. the allegation that the CCI cites is a "take it or leave it" condition for all app developers.
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It's alleged that Google is using its market power and control over android to extract a 30% fee.
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Another interesting bit: the 30% Google tax will increase cost for google's competitors. Google's vertical integration (Play books, play movies, YouTube music) etc.
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More vertical integration issues being questioned: Google having data on competing apps
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This is where the @GooglePayIndia bit comes in: the allegation is that Google encourages preinstalls of Google Pay and OEMs have no choice but to agree to terms imposed by Google. Google has said in response that these are separate agreements
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3. Big one: [Play Store] Search manipulation and bias by Google in favour of Google Pay. That even when users search for Pay on the Play Store, the first result is invariably Google Pay, and not Paytm or Phonepe.
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![3. Big one: [Play Store] Search manipulation and bias by Google in favour of Google Pay. That even when users search for Pay on the Play Store, the first result is invariably Google Pay, and not Paytm or Phonepe.8/](https://pbs.twimg.com/media/EmYnYmpVgAAVZlC.jpg "3. Big one: [Play Store] Search manipulation and bias by Google in favour of Google Pay. That even when users search for Pay on the Play Store, the first result is invariably Google Pay, and not Paytm or Phonepe.8/")
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4. Prominent placement of Google Pay on the Play Store. That Google has rigged it's "User Choice" and "Editor's choice" and "Top free apps" lists to favour @GooglePayIndia
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And that Google Pay is being promoted on google search for recharges and bill payments.
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5. That Google prioritises Google Pay ad on the play store everytime someone searches for Paytm or Phonepe.
Reminder: this is similar to the Bharatmatrimony case that is in the Supreme Court (since 2012)
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Reminder: this is similar to the Bharatmatrimony case that is in the Supreme Court (since 2012)
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So these are all the key issues being considered here. Some of these issues has been raised earlier by Indian founders. For more content, please do watch my chat with @MitaliLive on YouTube:
Just to clarify: point #5 , about search advertising manipulation, is not being investigated by the CCI in this investigation.
I just did a search for "pay" on the play store. First result: Google pay. The ad is also google (from one pocket to another, so no cost?). This the allegation in CCI complaint too. Prioritisation of Google pay by Google.
And for "Payments"
