India: Google Payments fined 113 million U.S. dollars

Google has to pay a horrendous fine in India due to blatant competition violations by Google Payments.

Google Payments is coercion

A whopping sum of 113 million US dollars must now be paid by Google as a fine in India. This is according to a press release from the Competition Commission. The reason for this is that the search engine giant only accepts Google Payments for payments within apps from the Google Play Store. No other payment processor is possible. The Competition Commission in India clearly sees this as the exploitation of a dominant position and has therefore levied the fine. Google’s practice is somewhat reminiscent of Apple.

Last year, for example, the company was ordered to revise its App Store in the U.S. because it did not adequately indicate payment options other than Apple Pay. From the point of view of the Competition Commission of India, it is in no way up to Google to dictate the payment method. Instead, the decision about the different payment options lies with the app developer. An adjustment on the part of Google has now been demanded by the commission within the next three months. Compared to the 4.1 billion euro fine imposed on Google by the European Court of Justice in September, however, the $113 million seems almost like peanuts.

Google blocks other payment methods

Furthermore, the responsible commission has criticized the regulations of the US tech company around the topic of “anti-steering”. These stipulate that developers of apps for the Google Play Store are not authorized to send their app users via link to another website where another payment method would be possible. Google has thus also eliminated the last loophole for programmers, which was available for using the services of third parties. Google Payments is thus without alternative. Google itself shows itself to Gizmodo again as a benefactor and plays down the criticism of the authorities.

Indian developers have benefited from the technology, security, consumer protection and unparalleled choice and flexibility that Android and Google Play offer. And by keeping costs low, our model has driven India’s digital transformation and expanded access for hundreds of millions of Indians. We remain committed to our users and developers and are reviewing the decision to evaluate next steps.Google spokesperson told Gizmodo