Paytm at loggerheads with Google: Case Study

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The payments app Paytm is at loggerheads with the Google Play Store citing violations. A huge debate has come into place stating Google’s power over the applications. Paytm had initially launched a campaign called as Paytm Cricket League to have an edge over the Indian Premier League season. Paytm campaign rewarded its users with many cricket player stickers which were used to form few teams with the ongoing season.

Active participation in these led to cashback and through the help of UPI directly reached in the user’s bank account. With a strong violation that these are campaigns in violation of gambling policies, Google took down the Paytm app from its Google Playstore. The reason why Google took down the Paytm app from its Google Playstore was that the campaign violated two policies of Google. The campaign was initially linked to Paytm First Games which is said to possess Daily Fantasy Sports which are indeed something Google restricts. It further indirectly promoted the DFS platform. Further, the campaign insisted the players form a team that even made it similar to fantasy gaming and also depended on real-world sports. This again violated the Google policies. It wouldn’t have been a violation if Paytm had for instance given amounts to the players and cash for users on that note.

Paytm on the other side says that Google did not give it a chance to respond and immediately trashed the app after one notification. Though Paytm took off the campaign, it said it was well within the guidelines of the same and as well as of the land. Paytm also said that the campaign did not allow the users to purchase any player and it never linked to the Paytm First Games. Paytm says it was asked to obey the Google orders and accuses of the anti-trust Google showed.

Now if in case Google takes Paytm to court, India’s lasting technological policies will have a severe impact. The known fact being that both Google and Paytm are technology-driven companies, a long fight between them in the court may not work because Paytm will have to prove that the policies followed by Google will hurt consumers which is indeed difficult to prove. One good example is that Tez shots were run by Google earlier and Paytm cited this as an example but the only difference being that it didn’t run at the same time as that of the Paytm campaign.         

It is a true story that too much power is exerted by companies like Google and Apple.  After a recent hearing, the US Congress said that big tech firms like Google have to be divided. If in case Paytm takes the case to the Competition Commission of India’s radar, then these big monopolies will be a subject that will be taken up by the EU and US Congress too. Also, the Competition Commission of India has fined Google even before but not the aspect of dominance.