Google defers 30% commission on in-app purchases in Play Store

Google has extended the time for developers in India who use alternative payment system, to integrate with the Play Store billing system till March 31, 2022, deferring the enforcement of 30 percent commission on in-app purchases of digital goods from its Play Store.
Google Android dominance
The move, the technology giant said, is to ensure that the Indian developers have enough time to implement the UPI for subscription payment option that will be made available on Google Play.

Meanwhile, Paytm has launched Android mini app store taking on Google.

Google said it is setting up listening sessions with the leading Indian startups to understand their concerns more deeply.

“We will be setting up Policy Workshops to help clear any additional questions about our Play Store policies,” Purnima Kochikar, director of Business Development, Games & Applications, Google Play, said in a blog post.

Google said the policy only applies if a developer charges users to download their app or they sell in-app digital items, which is less than 3 percent of developers with apps on Google Play.

Google said developers can find more detail on Payments Policy page. Google has also posted a developer FAQ that answers many of the top developer questions in India.

The Google decision to extend the time for developers in India to integrate with the Play billing system comes in the wake of criticism it has received from various stakeholders.

The developers and payment gateway players have criticised the new Google in-app purchase policies where those using Play Store to sell digital services will be required to use the tech giant’s own built-in payment system.

“Just because Google owns the gate and the gateway to the digital ecosystem of this country, they should not act arbitrarily and enforce their rules and regulations which are contrary to our country’s laws,” said Vishwas Patel, founder, CCAvenues and chairman, Payments Council of India.

Google cannot force Indian apps developers/owners selling digital services to compulsorily use the Google Billing and payment system and charge 30 percent MDR, he added.

In fact, more than 97 per cent of developers with apps on Google Play already comply with the policy.

“To be clear, the policy only applies if a developer charges users to download their app or they sell in-app digital items, which is less than 3 per cent of developers with apps on Google Play,” Purnima Kochikar said.