ADIF files petition with CCI seeking interim relief from Google Play Store commission policy
The Alliance of Digital India Foundation (ADIF) recently sought out interim relief from Google Play Store’s new commission policy by filing a petition with the Competition Commission of India (CCI). The representative body claimed that the policies, due to come into effect from March 22, would make it prohibitive for Indian startups and is an ‘anti-competitive’ move.
Google’s new policy will be restricting certain categories of applications to exclusively use the Google Billing System for receiving payments. GBS, in turn, takes a 30 percent commission for all Play Store transactions- an exorbitant amount when compared to the standard 2 percent commission taken by other payment processing systems.
ADIF said in a statement, “There is a strong case for seeking such relief as this new policy, when it goes into effect next March, would have a destructive effect on the operating margins of a large number of startups and make their business models infeasible.”
After a probe in November 2020, the CCI held that it is of the view that the policy is seemingly unfair as it strips app developers of the freedom to select a payment processing system of their choice.
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