CCI denies interim order restricting Google from charging its service fee

“The Commission is of the considered opinion that no case whatsoever has been made out by the informants which warrant the grant of interim relief. Resultantly, the applications stand dismissed,” said the CCI while rejecting the plea by app developers in its order.The Competition Commission of India (CCI) on Wednesday declined an interim relief order that would restrain Google from levying service fees on app developers until a final decision is made by the regulator.

The CCI also said the Director General (DG) would continue its investigation as ordered by the commission in its March 15 order.“The DG shall investigate without being swayed in any manner whatsoever by the observations made herein,” the order reads.
The regulator in its order said that while there might be concerns about the fairness of Google’s fee structure, it was essential to recognise the costs and responsibilities associated with maintaining and operating app stores.

Google had argued that restricting it from charging a fee in the interim would virtually mean that the tech giant would have to provide its Playstore for free to developers in India.

“No other court or regulator has passed a similar relief despite repeated requests. This recognises that Google cannot provide its platform without any consideration, especially when developers continue to charge their users for digital in-app purchases and enjoy the services of Play,” said the CCI in its order.The plea was submitted by People Interactive India, which has brands such as Shaadi.com, and Sangam.com, and Mebigo Labs Pvt Ltd that owns the brand Kuku FM along with the Indian Broadcasting and Digital Foundation (IBDF) and the Indian Digital Media Industry Foundation (IDMIF).

“While it is essential to ensure a level playing field and protect competition within the app store market, any measures taken should be proportionate and carefully crafted to minimise unintended consequences and preserve the overall integrity and functionality of the platform ecosystem,” it further read.Attempts to reach out to People’s Group, ADIF, and others were unsuccessful as no response was received.