India Internet News
CUTS Drives CCI Attention To Facebook Credits
03 August 2011
Consumer right activist CUTS International has driven competition regulator CCI to inspect potential misuse of dominant place by social networking site Facebook.
CUTS has marked to the Competition Commission of India (CCI) about Facebook Inc and its recently presented virtual currency 'Face-book Credits'. According to the new contractual agreements, game developers deploying the Facebook platform must only use Facebook Credits in the process of their games.
In addition to this, it must approve not to charge lower prices to users outside of Facebook, and must pay a service charge of 30% for all Facebook Credit purchases that may be passed through different games or applications on the popular website.
CUTS stated, "Facebook can potentially engage in anti-competitive and unfair business practices in the market for virtual goods purchased in social games through its Facebook Credit terms in India and therefore its activities in this regard need to be investigated by the CCI."