Google India defended its stance on Play Store service fees for developers and user choice billing policy, emphasizing that its service fees are the lowest compared to other major app stores. The company stated that less than 60 out of the 200,000 Indian developers on Google Play would currently be subject to a service fee above 15 percent.
Google, in a blog post, has clarified that this fee could be further reduced by 4 percent if users opt to pay through an alternative billing system. They also highlighted that only 3 percent of developers in India sell digital goods or services, making them liable to pay a service fee.
Google assured that for the majority of developers, service fees are 15 percent or lower due to the various pricing programs offered by Google Play. The company’s statement came in response to an inquiry initiated by the Competition Commission of India (CCI) regarding Google’s alleged non-compliance with Play Store’s user choice billing policy.
In October 2022, the CCI imposed a penalty of Rs 936.44 crore on Google for its abuse of dominant position in relation to Play Store policies. The CCI directed the company to undertake corrective measures to rectify unfair practices. Recently, the Alliance of Digital India Foundation (ADIF) approached the CCI regarding Google’s non-compliance, prompting the market regulator to order an inquiry into the matter.
Google affirmed its commitment to adhere to the CCI’s October 2022 order, stating that it had expanded user choice billing to all developers in India. The updated policy went into effect on April 26, 2023. The company indicated that it would notify developers who have not implemented one of the three available billing options, and they would have two weeks to make the necessary changes to comply with the policy requirements.
Google has expressed its dedication to the success of the Indian app ecosystem and its enthusiasm for connecting users with helpful apps through Google Play, facilitating the growth of sustainable global businesses for developers.
