For the second time on as many occasions, Google postponed the launch of the Play store’s billing system in India on Friday. As opposed to the original deadline of March 31, 2022, Google Play’s billing system will now be implemented until October 31, 2022.
It is now possible for Indian developers to incorporate Google Play’s billing system, under which they must pay Google a commission for app purchases, for an extra seven months.
A Google official told Gadgets 360 that the extension of the deadline is in reaction to the Reserve Bank of India’s recurring digital payments requirements (RBI).
As recently as October 2020, we had said that Indian developers should begin integrating with Play’s charging system no later than March 31, 2022.” Since India’s guidelines for recurring digital payments have changed, we’re extending this deadline until October 31, 2022, to give Indian app developers more time to implement the necessary product support for recurring payments via user payment systems like UPI and wallets, according to the spokesperson.
According to Google’s original plans, the company was going to begin charging developers for their services in September of this year. For Indian developers, the change was postponed until March 2022, even though it went into force for worldwide developers in October 2017. It was mostly because of the problems that Google had when requiring developers to utilise its payment system and charging a commission for in-app purchases made through Google Play.
According to Google’s response to the complaints about charging a commission, the service charge only applies to developers that sell digital material through Google Play, and that base is stated to be fewer than 3% of all developers accessible on the platform
In certain cases, legal action was taken against Google after the company’s initial response to the backlash from developers. It was in November of last year that the Competition Commission of India (CCI) ordered a thorough investigation of the Menlo Park, California-based corporation for its alleged unfair business practices and anti-competitive behaviour with Google Play in the country.
For the first $1 million (about Rs. 7,58,23,200) in annual developer profits, Google reduced its Play store commission to 15%. July 1 marked the beginning of the implementation of this new feature.
Earlier this month, Google announced plans to reduce the service cost for all app subscriptions from 30% to 15%, effective in January 2022. This is part of Google’s ongoing effort to improve its Play store revenue model. In addition, the Play Media Experience Program cost for selected app verticals has been decreased to 10%.
In a statement, a company representative stated, “We recognise the particular demands of the Indian developer ecosystem and remain dedicated to working with Indian developers on their growth path.”
ADIF, a New Delhi-based group of Indian entrepreneurs and start-ups, has described the move as a “short-term reprieve” for Indian developers. A significant criticism was also expressed to the rationale behind the extension.
Because they are uncertain whether or not to comply with Google’s new standards, app owners have been put in a difficult position. They are hoping that CCI would intervene in the interim relief case to keep things as they are. Although Google has given them additional time, “it doesn’t remove their worry,” said Sijo Kuruvilla George, Executive Director of ADIF.
