CCI restricts Google from charging its service fee

Google argued that if it couldn't charge a fee during the investigation, it would mean giving its Playstore for free to developers in India.
CCI restricts Google from charging its service fee

The Competition Commission of India (CCI) rejected the request to stop Google from charging service fees to app developers while the investigation is ongoing. The CCI also stated that the Director General (DG) would continue investigating, following the commission's March 15 order.

"The Commission doesn't see any reason to grant interim relief based on the informants' claims. Therefore, the applications are dismissed," said the CCI in its order. It also instructed the DG to carry out the investigation without being influenced by any observations made in the order.

While acknowledging concerns about the fairness of Google's fee structure, the CCI emphasized the costs and responsibilities involved in maintaining app stores. Google argued that not being able to charge fees would mean offering its Playstore for free, which other courts and regulators haven't allowed despite repeated requests.

The plea was filed by People Interactive India, the owner of brands like Shaadi.com and Sangam.com, Mebigo Labs Pvt Ltd (owner of Kuku FM), the Indian Broadcasting and Digital Foundation (IBDF), and the Indian Digital Media Industry Foundation (IDMIF).

Anupam Mittal, Founder & CEO of People Group, commented, "The important aspect is the CCI's earlier order mandating an investigation within 60 days. While an interim order would have helped struggling startups immediately, the long-term perspective remains unchanged. We are confident in our case against large tech companies engaging in monopolistic practices to extract rents from India."

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