Internet giant Google temporarily halted enforcement of its requirement for developers to use its Play billing system for the purchase of digital goods and services days after India’s antitrust regulator imposed ₹936.44 crore for abusing its market position.
Last week, Google India was found guilty by the Competition Commission of India (CCI) of abusing its market position on the Play Store to promote its payments app and in-app payment system.
In a blog, Google said that it is reviewing legal options to respond to the CCI order.
“Following the CCI’s recent ruling, we are pausing this enforcement of the requirement for developers to use Google Play’s billing system for the purchase of digital goods and services for transactions by users in India while we review our legal options and ensure we can continue to invest in Android and Play,” it said.
“The requirement to use Google Play’s billing system applies for in-app digital content purchases for users outside of India,” the blog post read.
On October 25, the antitrust body directed the company to cease and desist from unfair business practices, the second penal order on Google India in less than a week.
On October 20, the watchdog imposed a penalty of ₹1,337.76 crores on the US-based tech giant for using its dominant position in multiple markets to promote its payments app and in-app payment system. The commission also ordered the internet major to cease and desist from various unfair business practices.
Google’s Play Store constitutes the main distribution channel for app developers in the Android mobile ecosystem. The app store allows its owners to capitalise on the apps brought to market.
The regulator, in its statement, revealed that making access to the Play Store for app developers dependent on mandatory usage of Google Play’s Billing System (GPBS) for paid apps and in-app purchases constitutes an imposition of an unfair condition on app developers.