OTT Platforms Ask CCI To Take Action Against Google Play Store’s High Commission Rates
The CCI has been approached by the Indian Digital Media Industry Foundation (IDMIF), an organization that represents several prominent streaming players in India, to contest Google’s app store billing policy.
According to a report in the Economic Times, in a letter CCIOTT Streaming Apps Approach CCI To Fight Against Google Play Store Commission – IDMIF stated that Google’s commission is both unjustified and harmful and that its policy could kill off smaller OTT companies and channels and those “especially in the content curation industry”.
This move comes just after Disney+ Hotstar app owner Novi Digital Entertainment approached the Madras High Court in an attempt to stop Google from removing the app from the Google Play Store. Also, it is said to be the first non-Indian streaming platform to challenge Google’s policies.
IDMIF represents the following OTT players in India: Disney+ Hotstar, Zee5, Voot, SonyLIV, Manorama Max, SunNXT and Discovery+.
“IDMIF’s approach to CCI on this issue adds significantly to the ongoing case that smaller players are not being hurt, but big players in the space are also facing,” Vinay Singhal, CEO OTT startup, ET quoted Stage.
In response, CCI has asked IDMIF to provide evidence to support its contention.
The Madras High Court also granted an interim injunction to Disney+Hotstar, ordering the streaming platform to pay Google a 4 percent lower fee for using the in-app payment system.
Previously, streaming platforms had to pay “between 15% and 30% under the previous Google Billing and Payment System (GBPS)”, but under the “new User Choice Billing System (UCB)”, the rate has dropped by 4% to 11%. -26%.
