Google’s ‘user choice billing system’ non-compliant with CCI’s remedy: ADIF
- ByStartupStory | February 3, 2023
The Alliance of Digital India Foundation (ADIF) said in a detailed note on Thursday elaborating on Google’s non-compliance with the two CCI orders that the ‘User Choice billing system’ proposed by Google requires app developers to pay 11/26 percent commission to Google, making it non-compliant with CCI’s remedy.
It stated that the user choice billing system is not in line with the CCI’s directives of ‘not imposing any condition (including price related condition) on app developers, which is unfair, unreasonable, discriminatory or disproportionate to the services provided.’
Google announced around five changes to the way Android and Google Play billing work in India last week. CCI had directed Google to make nearly 20 changes in the operation of its services in India in two rulings, one on October 20 and the second on October 25.
Google’s changes will allow OEMs to licence individual Google apps for pre-installation on their devices. Previously, these apps were included for free with Android. Indian users will now be able to select their default search engine. Google is also updating its backend to enable partners to create incompatible or forked versions of Android. Google announced in a blog post that user choice billing will be available to all apps and games beginning next month.
According to the think tank, which represents several Indian digital startups, Google has made alternative payments available, but only for the purchase of in-app digital content, not app downloads. It goes on to say that the search engine giant is silent on ‘not imposing Anti-steering Provisions on app developers,’ as previously stated.
Furthermore, it claimed that Google has not responded to the CCI’s request for a clear and transparent policy on data collected on its platform, as well as the use of such data and the potential sharing of such data with app developers, while also remaining silent on data collected by Google not being leveraged to further its competitive advantage.
“Google’s blogpost does not give any clarity on whether users will be able to easily change the default settings in their devices, in minimum steps possible,” ADIF claimed.
When it comes to the Android app bundling case, ADIF claims Google does not address the issue of OEM app placement freedom.
“Google has not stated that it will not impose AFA and ACC obligations on OEMs,” ADIF said. “(There’s also been) No clarity by Google on CCI’s remedy detailing ‘Google shall not incentivise or otherwise obligate OEMs for not selling smart devices based on Android forks (or on) CCI’s remedy detailing ‘Google shall not restrict un-installing of its pre-installed apps by the users.’”
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