CCA investigation in Android apps sales market

Following some press articles claiming that the Croatian software companies were forced to open branch offices or find partners abroad because Google did not allow them to register for direct sale of their apps via the Google Play store, the Croatian Competition Agency (CCA) investigated the Android apps sales market in the Republic of Croatia.

In the course of the investigation the CCA found that the conduct of Google in the market did not indicate possible infringement of competition rules.

In accordance with the results of the investigation Google for the time being does not support the undertakings from Croatia to sell applications for Android phones on Google Play because it is unprofitable for the company due to local cost necessary for the provision this service. Such a practice is not an isolated case given that the Google business policy regarding the accessibility of the Google Play store is currently similar in 73 countries worldwide.

The fact is that Google allows gradual registration of merchants from around the world on the Google Play platform, depending on the cost and profitability of such a venture. The current situation in Croatia is similar to that already seen in other countries, such as Bulgaria, Cyprus, Estonia, Latvia and Lithuania where merchants may register since February 2015, and in Island, a non-EU country, which was supported this status only in June.

In addition, in order to ensure the undertakings in Croatia to receive money for their Android apps, Google must have a clearance for domestic pay transactions in the Republic of Croatia. Google obtained this clearance in the third quarter of 2014.