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Alphabet Justifies YouTube’s Use of Google Play Billing System: Report

Google argues before NCLAT that in-app service fees comply with competition laws amid CCI probe
Alphabet Justifies YouTube’s Use of Google Play Billing System: Report

On Wednesday, Google’s parent company, Alphabet Inc reportedly informed the National Company Law Appellate Tribunal (NCLAT) that its streaming platform YouTube also uses the Google Play Billing System (GPBS), similar to other third-party apps. The statement was made in response to the Competition Commission of India’s (CCI) accusations that Google imposed unfair and discriminatory conditions on third-party apps through GPBS.

Google’s legal team argued before NCLAT that the GPBS allows the company to recover its service fees cost-effectively and that charging such fees does not violate CCI regulations. Additionally, they claimed that GPBS does not stifle competition in the payment processing market.

In March, the CCI ordered an investigation into Google following complaints from Indian startups over app de-listings. The startups, including Shaadi.com, Matrimony.com and Naukri.com clashed with Google over its in-app payment fees. Google removed these apps from its Play Store citing non-compliance with its billing policies.

The CCI has accused Google of enforcing unjust and discriminatory terms within its Play Store, which may disadvantage certain developers. The commission has directed its Director General (Investigation) to complete the probe within 60 days, asserting that Google's actions may violate India's anti-trust laws.

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