India's antitrust regulator fined Google for another $113 million

Google Corporation, owned by the U.S. holding company Alphabet Inc. has been fined $113 million by India. The country's antitrust authority said the U.S. giant should not restrict local app developers from using third-party services for billing or payment processing.

The Competition Commission of India (CCI) said Google used its "dominant position" to force app developers to use its payment system in their products. An important nuance is that selling digital goods in apps is a key way for developers to monetize.

CCI's action was another blow to Google in one of its priority markets. Last Thursday, the regulator fined the corporation another $162 million for anti-competitive practices related to its Android operating system.

A Google spokesman said, "By keeping costs low, our model has contributed to 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 CCI decision to evaluate next steps". The company can appeal CCI's decision in an Indian court.

In addition, antitrust authority added that Google should also ensure full transparency both in its communication with app developers and in providing information about fees charged for services.

Google has also been asked to take eight corrective measures or adjust operations within three months, including not restricting "app developers from using any third-party billing/payment processing services, either for in-app purchases or for in-store purchases in general", the 199-page CCI order states.

The search engine giant also faced a separate investigation into its behavior in the Indian smart TV market. It called CCI's move a "serious setback for Indian consumers and businesses".

Google has been criticized worldwide for requiring software developers who use its app store to use a proprietary payment system that charges up to 30% commission on in-app purchases. Recently, however, Google has begun to allow alternative payment systems in more countries.