Indian internet<\/a> start-ups have termed the recent changes made by Google<\/a> to its Android operating system and Play Store Billing policies as “ delaying tactics” that are “cosmetic in nature” as the search giant continues its appeal against the October order of the Competition Commission of India<\/a> (CCI).
Google is following the 'same playbook' that it employed in Europe and South Korea and is exploiting “loopholes” to show compliance with the orders that were to come into effect on January 26, developers told ET. This was after the SC extended the January 19 deadline by a week.
On Wednesday, Google announced around five changes<\/a> to the way it operates Android and Google Play billing in India. India’s competition watchdog in its two rulings – one on October 20<\/a> an the second on October 25<\/a> which had directed the American company to make close to 20 changes in the operation of its services in India.
On January 19, the Supreme Court while hearing an appeal by Google refused the tech giant interim relief and directed the tech giant to comply with the National Company Law Appellate Tribunal’s (NCLAT) directive<\/a> of depositing 10% of the CCI imposed fine.
Indian internet<\/a> start-ups have termed the recent changes made by Google<\/a> to its Android operating system and Play Store Billing policies as “ delaying tactics” that are “cosmetic in nature” as the search giant continues its appeal against the October order of the Competition Commission of India<\/a> (CCI).
Google is following the 'same playbook' that it employed in Europe and South Korea and is exploiting “loopholes” to show compliance with the orders that were to come into effect on January 26, developers told ET. This was after the SC extended the January 19 deadline by a week.
On Wednesday, Google announced around five changes<\/a> to the way it operates Android and Google Play billing in India. India’s competition watchdog in its two rulings – one on October 20<\/a> an the second on October 25<\/a> which had directed the American company to make close to 20 changes in the operation of its services in India.
On January 19, the Supreme Court while hearing an appeal by Google refused the tech giant interim relief and directed the tech giant to comply with the National Company Law Appellate Tribunal’s (NCLAT) directive<\/a> of depositing 10% of the CCI imposed fine.
The SC, however, extended the deadline of the CCI by a week and asked the NCLAT to decide on Google’s appeal on merits by March 31.
“How can Google defy both CCI and Supreme Court,” asked Rohan Verma, CEO of MapMyIndia, a listed entity which competes with Google Maps<\/a>.
Pointing out that Google has listed out just a few points ( instead ) of following all 10 directives by CCI (in the Android order), “despite CCI’s directive, why is Google not allowing users to uninstall Google Maps and other apps and why is Google not allowing other app stores to be distributed through Google Play Store? ” he said.
MapMyIndia is officially a party to the matter being heard by the NCLAT.
PhonePe owned IndusOS, another firm which has become a party to the matter, did not have an immediate comment to offer.
In its order on Google Play Billing, CCI had asked Google to make close to about ten changes but the search giant indicated one change which pertains to opening user choice billing to all apps, in its announcement on Wednesday.
Snehil Khanor, Co-Founder & CEO of TrulyMadly.com is of the view that implementation of user choice billing is a direct violation of CCI order. Specifically, as Google will still be forcing developers to use its gateway to integrate with other payment gateways. It will also continue to charge 26% instead of 30% of the transaction value.
“All directives in combination were designed to ease the monopolistic grip of Google on India's digital ecosystem, but it seems like they are trying to defy the order and dilute the impact of the landmark CCI verdict as well as the honourable Supreme Court of India<\/a>,” Khanor said.
Homegrown internet entrepreneurs argue that by stalling the implementation of changes required by CCI, Google continues to “harm the Digital India<\/a> ecosystem” and should be held “accountable.” While some said Google has announced its intent to implement most of the important directives, others argued that all CCI mandates should be followed in “letter and spirit” for it to have a full impact.
Murugavel Janakiraman, CEO of BharatMatrimony pointed out that in an earlier blog post on September 2, last year Google had announced that a user choice billing pilot would mirror what Google tried to enforce in South Korea.
\"We urge the CCI to engage with app developers to see whether the supposed user choice (announced on Wednesday) is at all, an effective choice or another attempt by Google to circumvent the law,\" Janakiraman told ET.
Appeal to continue<\/strong>
The changes announced by Google on Wednesday, will allow OEMs to license individual Google apps for pre-installation on their devices. Earlier these apps were pre-installed for free with Android. Indian users will now have the option to choose their default search engine. Google is also updating its backend to allow partners to build non-compatible or forked variants of Android. User choice billing will be available to all apps and games starting next month, Google said.
Google however said that it will \"continue to respectfully appeal certain aspects of the CCI’s decisions\" in the interests of the larger ecosystem.
Some of the major changes directed by CCI require Google to not impose anti-steering provisions on app developers and not restrict them from communicating with their users to promote apps and offerings, in any manner. Google is yet to comply with these directives.
Google did not respond to email queries from ET.
Navkendar Singh, Associate Vice President, IDC India, said, Google has still not allowed third party app stores to be integrated within the Play Store, and the onus of discoverability still remains on the app developers. “They will now have to go to the OEMs (handset makers) and ask their app to be pre-installed, because now they are not mandated by Google to pre-install Google apps,’ he said.
Google has also not provided any clarity on the CCI’s directive to set out a clear and transparent policy on data that is collected on its platform, use of such data by the platform and also the potential and actual sharing of such data with app developers or other entities, including related entities.
“This just shows that Google is procedurally claiming to comply with the order but not fully complying as such. I think they will not fully comply and continue to challenge and in the meantime try to seek some sort of dilution in the order either at NCLAT stage or SC,” said Salman Waris, founder of law firm TechLegis.
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