New Delhi: App developers and start-ups have expressed their disapproval of Google's new payment policies. The business has now spoken out in support of the April 26-effective policy. The new policy, according to the company, complies with the Competition Commission of India's (CCI) order from October 2022. Let's examine Google's new in-app billing guidelines and the objections raised.
One of Google's largest markets is India. But due to India's competition watchdog, the tech giant has experienced numerous setbacks recently. Due to its anti-competitive Play Store policies, Google was fined Rs. 936.44 crore by the CCI in October of last year. The company was also instructed by the watchdog to permit third-party billing systems.
Three payment options are available under Google Play's new billing policy: Google Play's billing system, a different billing system in addition to Google Play's, and payment based solely on consumption without a service fee. The company typically levies a service fee of 15% to 30%. It claimed that 15% or less is what the vast majority of Indian developers pay. Users of alternative billing systems are further eligible for a 4% discount.
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Google claimed in a blog post that a portion of the service fee it receives goes towards its investments in the Indian app ecosystem. According to the company, its typical 15% or lower rate in India is the "lowest" of all the major app stores. Less than 60 of India's 200,000 developers, according to Google estimates, "could pay a service fee of above 15%."
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Startups and app developers have blasted Google's new billing policy as being "old wine in a new bottle." Developers are still required to pay Google a service fee of 11-26% even if they are using an alternative billing system.
They claim that the service tax imposed on customers who do not use Google's billing system is anti-competitive and in violation of the CCI order from October.
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Match Group, the company that owns Tinder, and the Alliance of Digital Foundation (ADIF) petitioned the Delhi High Court to halt Google's new in-app billing fee system while the CCI investigated it. Google has made the decision to continue despite this.
The CCI has opened an investigation, but due to a lack of quorum, it gave the tech giant the opportunity to proceed.