CCI Is Tightening The Noose Around Google Pay, And Google Is Miffed

Must Read

Elon Musk Added Over $100 Billion To His Net Worth In Just 1 Year, Leaves Jeff Bezos Behind

Jeff Bezos may the world's richest person in the world but it's Elon Musk who has been...

Elon Musk Overtakes Bill Gates And Becomes the 2nd Richest Person in the World

It's been a good week for Elon Musk and his electrical vehicle business Tesla. Earlier this week,...

Free Netflix In India From December: Netflix In A Pursuit Of New Subscribers

A month ago, we reported how Netflix might be brewing something interesting that could lead to a free...

In what can only be called an interesting coincidence, soon after GPay recently cried foul about NCPI’s 30% cap on UPI transactions while WhatsApp Pay announced its official rolled out in India, the payments app from Google has now ended up in a pickle with the CCI.

Today, the Competition Commission of India (CCI) ordered for a detailed probe to be conducted against Google for employing unfair business practices related to Google Pay.

In its 39-page long order, the CCI’s Director-General (D.G.) has mentioned that the body views Google Pay to have ‘contravened various provisions of Section 4 of the Act’ and therefore it a detailed investigation against the same needs to be carried out at once.

Advertisements

Note here that Section 4 of the Competition Act refers to the abuse of a dominant market position. According to the CCI body, it is of ‘prima facie’ view that Google’s conduct in the Indian payments’ space has been unfair and discriminatory.

Regulators have alleged that the tech giant has not been giving market access to other apps that could compete with Google Pay and thus, in turn, have violated different provisions of Section 4(2) of the Competiton Act.

Now, surprisingly enough, as mentioned earlier, this probe from the CCI interestingly coincides with two extremely significant events.

On Friday, WhatsApp Pay was finally allowed to roll itself out in India for the first time, after two years of back and forth negotiations and discussions with authorities. Along with it came a piece of shocking news for all existing players in the UPI payments’ space including Google Pay.

The National Payments Corporation of India, just minutes after announcing that they have green light WhatsApp Pay’s launch in the country, also mentioned that soon the body would be enforcing a cap which would not let third-party UPI payments apps to process more than 30% of all UPI transactions in a month single-handedly. This was when all hell broke loose.

Advertisements

Not only did it hint at the probability that NCPI, fearing homegrown apps would lose market share against the Facebook-owned messaging giant, made this move out of thin air. But, it also set it in stone that going forward the UPI-regulatory body would put a leash around all players of foreign origin including Google Pay and PhonePe besides WhatsApp Pay.

Sajith Sivnandan, the Business Head at Google Pay, India, addressed the same in a statement and said that it came as a surprise as it could have severe implications over hundreds of millions of users who make use of UPI for daily transactions.

He also said that it could impact the further adoption of UPI and ultimately lay waste to the collective goal of increasing financial inclusion in India.

Thus, now, following how the series of events have developed so far, it begs us to ask:

  • Is this entire debacle a mere trickle-down effect of the entry of WhatsApp Pay into the payments’ space in India aka a WhatsApp Pay effect?
  • How will NCPI enforce the cap? What happens when one particular app reaches its threshold for the month? Do consumers need to rely on multiple payments’ apps in the near future?
  • How exactly has Google Pay denied market entry to other players?
  • Is the CCI’s move anyway linked to Google Pay opposing NCPI’s recent announcement?

Unfortunately, as of now, these questions remain unanswered. However, there’s one undeniable truth that everyone can unanimously agree on – the homegrown players such as PayTM, Reliance owned JioPay currently stand to benefit massively from this situation as they are armed with proper banking permits which don’t consider them as ‘third party apps’.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Facebook’s Past Comes Back To Bite As South Korea Fines Them For 2018 Scandal

The social media behemoth Facebook Inc. (NASDAQ:FB) has once against proved they are the true arch-nemesis of...

Amazon Future Group Dispute Deepens As Singapore Court Turns Down Future Group Plea

The dispute between Amazon and Future Retail is, apparently, far from over anything soon as the Singapore International Arbitration Centre (SIAC) has...

Google Pay Fee On Instant Transfer: An Indication Of Google’s Aggressive Monetisation Strategy?

Google has decided to levy fee on instant payment, starting from the US market. A few days back, Google...

Twitter Account Verification Is Back, But Has it Lost Its Mojo?

Twitterati queue up! As the Twitter account verification process which is responsible for awarding blue badges prepares to...

Paytm Lawsuit Impact: TRAI Slaps Fine On Jio, Airtel, BSNL And Other Telcom Operators

The emergence of e-wallets brought along with itself a big uprise in notorious phishing scammers who prey on unsuspecting consumers by pretending...

MobiKwik Takes A Dig At Paytm After The Recent App Ban

The ongoing China-India border tension is resulting in more apps getting banned, and every time that happens the Indian startup unicorn Paytm...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This