Developers must follow Google’s “interim processes” in order to provide an alternate billing system until it “builds APIs that will facilitate integration in 2023,” according to the company.
Beginning on April 26, 2023, Google will permit app developers to offer an alternative invoicing method for in-app purchases made within India, as it starts to follow the Competition Commission of India’s (CCI) most current antitrust guidelines.
Google announced on February 22 that, in response to “recent regulatory developments in India,” it is revising Google Play’s Payments policy, which will take effect on April 26.
As a result of this change, developers will be able to give customers a billing option other than Google Play when they buy in-app digital content. The transaction will still be subject to a service fee if a user uses the alternative billing system, albeit at a 4 percent lower rate.
As opposed to the standard service cost of 10–30%, this effectively means that developers will have to pay a service fee ranging from 6–26% for in-app purchases and subscriptions based on the type of app/service and the annual income it earns on Google Play.
The most recent update on the company’s support page states that starting on April 26, 2023, Google will allow app developers to offer an alternative billing method for in-app purchases within India. This action complies with recent antitrust orders from the Competition Commission of India (CCI). App developers will now be able to allow customers to pay for in-app digital content using methods other than Google Play as part of this new policy. Google requires that developers use its payment system for in-app purchases in accordance with the current policy, and it levies a 30% commission fee on all sales. However, some developers disagree with this approach and are outraged about it since they feel that the commission is too high.
According to this new law, developers will be able to offer clients alternatives to Google Play as a means of payment. Companies will be less reliant on Google’s payment system as a result of having more freedom to monetize their apps. “The Google Play service fee has never just been a fee for processing payments. According to the company’s support page, “It reflects the value of Android and Google Play as well as the whole spectrum of developer services we provide, including app distribution and discovery, the commerce platform, developer tools, analytics, training, and more.
Google has set “interim procedures” for developers in order to offer an alternative billing method until it develops official APIs later in the year that would enable integration. Developers who choose to build an alternative charging system will be required to switch to the company’s automated APIs once they become available later this year, according to the company’s support page. The decision is notable because it provides more payment options and could lead to cheaper rates for consumers, which will be advantageous for both Indian developers and clients. Also, it signals a change in Google’s payment policies, which have been under intense scrutiny from global regulators. The CCI has investigated Google’s fee schedule and advocated for increased developer competition and lower developer fees.
Wrapping Up
In light of the judgment of CCI. The commission imposed by Google, according to Rameesh Kailasam, president and CEO of industry group IndiaTech, “may kill the startup ecosystem, and force them out of the app market,” at the time.
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