Google on Monday announced that it is deferring its enforcement of a 30% commission on in-app purchases of digital goods from its Play Store till March 31, 2022, after facing backlash in the country. In a blog, it said that it is extending the time for developers in India who use alternative payment system to integrate with the Play Store billing system.
“We’re also extending the time for developers in India to integrate with the Play billing system, to ensure they have enough time to implement the UPI for subscription payment option that will be made available on Google Play -- for all apps that currently use an alternative payment system we set a timeline of 31st March 2022,” said Purnima Kochikar, Director of Business Development, Games & Applications, Google Play.
The company said it is setting up listening sessions with the leading Indian startups to understand their concerns.
"We will be setting up Policy Workshops to help clear any additional questions about our Play Store policies," the blog post added.
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.
Over 40 startups such as Paytm, Dream11, GOQii, Upgrad and others reportedly approached the Ministry of Electronics and IT (MEITY) on Saturday, and raised concerns about Google’s policy. The meeting was reportedly led by Paytm founder Vijay Shekhar Sharma, and was held virtually.
The Ministry also reportedly invited the views of startups which are not opposed to Google’s policies. The discussions were said to be preliminary.
According to Kochikar, the Google Play payments policy is not new.
"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," she reiterated.
“We have always said developers should have a choice in how they distribute their apps, and that stores should compete for consumers’ and developers’ business. Android is open and choice is a core tenet of the operating system,” she added, saying that it's why users have had control over which apps they use, and that most Android devices ship with two preinstalled app stores.
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.
"Also, they cannot force Indian apps developers/owners selling digital services to compulsorily use the Google Billing and payment system and charge 30 per cent MDR," he added.
According to the Internet and Mobile Association of India (IAMAI), prima Facie, Google's move, even if legal, is certainly not innocuous.
"For many founders of Indian start-ups, this brings back fears of the not so old deeply problematic revenue share model between VAS service providers (mainly digital goods) and telcos," the IAMAI said last week.
Google said that its billing system provides a simple, safe way for consumers to transact.
"We are deeply committed to the success of the Indian ecosystem. We do not succeed unless our partners succeed," Kochikar said.
With IANS inputs