Google Has Indefinitely Postponed In-App Billing Policy In India Following CCI Fines

Google has decided not to enforce its in-app billing system for the Android Play Store in India. The decision to indefinitely postpone the implementation of commonly accepted practices around the world seems to be due to the Competition Commission of India (CCI) and its stringent ruling against the search giant. Google had recently softened its stand on insisting Smart TV manufacturers install its Android TV OS only.

Google Accepts CCI's Directive Regarding Play Store Billing

Google seems to be in the crosshairs of the CCI. The commission has been monitoring and investigating Google's attitude and approach towards its partners selling products with Google's software either as a base operating system or as apps and services.

After three-and-a-half years, CCI imposed a penalty of ₹1,337.76 crores on Google on October 20, for abusing its dominant position in the Android Mobile device ecosystem as well as multiple other markets where it operates. The CCI also directed Google to make necessary amends.

If that's not enough, on October 25, the CCI once again fined Google ₹936.44 crores for abusing its dominant position. This time, the fine was in regard to Google's Play Store policies. The CCI directed Google not to restrict app developers from using any third-party billing or payment processing services. This directive is valid for purchasing apps as well as for in-app billing on the Android apps store.

Reuters Flash: Google says pausing enforcement of its in-app billing system in India after antitrust directive. pic.twitter.com/6yTeBYScnw

— Aditya Kalra (@adityakalra) November 1, 2022

Google has long been trying to bring in in-app billing along the lines of Apple's App Store policies. The company tried to enforce a mandatory integration of its Play billing system for all in-app purchases. However, this move was met with intense backlash from Indian developers. Relenting to mounting pressure, Google delayed the implementation to March 31, 2022, in India.

Google further extended the deadline to October 31, 2022, for the Indian market. The company claimed it needed time to finetune its Play Store billing system for the "unique circumstances with the payments landscape in the country".

India has several unique digital payment systems such as UPI and other e-wallets. Additionally, these instruments have the RBI (Reserve Bank of India) guidelines pertaining to recurring payments.

Google Takes A Tamed Approach To Policy Enforcement In India

Google had set October 31, 2022, as the deadline for deploying and enforcing the in-app billing system for its Play Store operations in India. However, following CCI's actions, Google has decided to postpone the enforcement, indicated one of the company's support pages:

"Following the CCI's recent ruling, we are pausing 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"

Google has been making some amends. Recently, the company allowed Amazon's Fire TV OS to be installed on Smart TVs made by manufacturers who are Google's partners. Previously, such a scenario wasn't possible because Google insisted on forcing Android TV OS on TV manufacturers. Through some of the contracts, Google indirectly threatened to withdraw Play Store access across all the manufacturer's products.