India anti-trust watchdog orders probes into Google Pay

The Competition Commission of India, an anti-trust watchdog, has ordered an investigation into Google’s payments app, Google Pay, over allegations the tech giant is abusing its market dominance, reported AFP.

The watchdog said it was investigating allegations that the California-based company “rigged” featured app lists to include Google Pay, “demonstrating clear bias”.

According to the report, the commission is also looking into a Google plan, which will start from March 2022 and requires some developers to pay a 30% commission on in-app purchases. The move has sparked an outcry in India.

The case was filed by an anonymous complainant and the commission will submit a report within 60 days.

Denying the allegations, Google said its payments app was successful because it offers consumers a “simple and secure” experience. Google Pay uses India’s Unified Payments Interface (UPI), which manages payment apps with over 140 Indian banks that are part of the network.

UPI is also used by Walmart’s PhonePe and the Alibaba-backed Paytm. The three dominate India’s digital payments market.

In India, Google’s Android mobile operating system is by far the dominant player and supports 99% of all smartphones, according to the research agency Counterpoint.

Analysts have said having such a widely used operating system could make it easier for Google to control the market, a claim the Silicon Valley firm denies.