The Reserve Bank of India has recently launched investigations into Google Play’s billing system over alleged violations of the Payments and Settlement System Act, according to the Media Sources. The probe comes in response to a complaint filed by the Kolkata-based Hoichoi Technologies.
Complaint Targets Google’s Foreign-Registered Platforms
Hoichoi Technologies has raised concerns regarding the operation of several of Google’s aggregator platforms in India, which are registered in foreign countries such as Singapore and the US.
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Google Responds to Allegations
A Google spokesperson stated, “The Google Play billing system is not a payment system and we are responding to the concerned authorities about their queries.” The RBI has reportedly met with Google executives and requested additional information.
Hoichoi Technologies’ Response
Hoichoi Technologies has declined to comment on the matter, citing its sub-judice status. The company has filed a writ petition on the issue at the Calcutta High Court and plans to share its views once the court order is pronounced.
Industry insiders suggest that Hoichoi is questioning the legality of Google Play’s billing system (GPBS). Google Play’s billing system allows app developers to sell digital products and content within their Android apps, including one-time products or recurring subscriptions.
CCI Orders Investigation into Google Play Store
Last week, the Competition Commission of India (CCI) initiated an investigation into Google Play Store’s billing policy. The CCI responded to complaints from several Indian firms, alleging that Google imposed an “unfair service fee” on app developers. This fee was claimed to restrict app developers’ resources for enhancing or developing their apps, thus hindering the growth of the app market.
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CCI’s Decision and Tech Giant’s Response
The CCI declined an interim relief request to prevent Google from levying service fees on app developers until a final decision is reached. This ruling comes in the wake of earlier complaints to the CCI, asserting that Google was not complying with its previous ruling allowing third-party billing services for in-app purchases.
