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Google changes payment practices in India after millions of fines
The Google logo on a smartphone. photo
© Matt Rourke/dpa
Is Google abusing its sheer market power? In India, a corresponding complaint had expensive consequences for the search engine leader. The company is now rowing back there.
After being fined millions by the Competition Commission in India, the Google parent company Alphabet has changed its payment rules in the country. For the time being, app developers will no longer have to use Google’s payment system for user transactions there. The group announced this on Tuesday and at the same time emphasized that the new rule only applies in India. Alphabet also wants to review its legal options.
The Indian Competition Commission last week imposed a fine of 9.36 billion rupees (115 million euros). She accused the company of abusing the Playstore’s dominant role by forcing developers to use Google’s payment system for app and in-app purchases. The competition authorities instructed Google to allow app developers to use any payment system in the Playstore.
Shortly before that, the Indian Competition Commission had already imposed a fine of the equivalent of 165 million euros on Alphabet. The reason: Google is said to have abused its Android operating system to strengthen its core business of online search.
India, which will soon officially be the most populous country in the world, is an interesting growth market for Google and other Silicon Valley companies. Android phones are very popular in India.