According to unidentified sources acquainted with the situation, the Reserve Bank of India (RBI) has opened an investigation into Google Play's billing system due to alleged violations of the Payments and Settlements Systems Act, as reported by a credible source. Following a complaint against the software giant from Kolkata-based Hoichoi Technologies, the investigation was launched.
The grievance pertains to the operation of several aggregator platforms run by Google in India, which are registered in other countries like Singapore and the US.
"The Google Play billing system is not a payment system, and we are addressing queries from the relevant authorities," a Google spokeswoman was quoted in the report. Google executives are said to have met with the RBI and given more details when asked.
The article further stated that the RBI did not respond to an email query.
Hoichoi Technologies said it will clarify its position after the court's decision and declined to comment, citing the subject's status as sub judice. Regarding the matter, the business has petitioned the Calcutta High Court via writ.
Industry insiders claim that Hoichoi is challenging GPBS's legitimacy.
App developers can offer digital products and content, such as one-time purchases and monthly subscriptions, inside their Android applications thanks to Google Play's billing system.
Prompted by complaints from numerous Indian enterprises, the Competition Commission of India (CCI) recently opened an investigation into the Google Play Store's billing structure over claims that it imposed a "unfair service fee" on software developers.
The CCI emphasized in its 21-page order that Google's activities restricted app developers' ability to enhance or grow their offers, which in turn hindered market growth.
A number of startups have filed petitions with the Competition Commission of India (CCI) claiming that the internet behemoth was deviating from its previous order allowing third-party in-app billing services.
The tech giant was given a brief reprieve when the Commission recently granted interim relief, which would have prevented Google from charging app developers until a final decision was made, despite the continuous scrutiny.
