Google stops charging Indian app developers via Play Store as per CCI ruling

November 01, 2022 By Fakun Gram

(Image Credit Google)

Google has temporarily stopped enforcing its Google Play Store in-app transaction invoicing mechanism on Indian software developers. The internet giant postponed the deadline for the payment system requirements imposed on Indian app developers last year and again this year, with the original deadline set for Monday, October 31. The Indian Express claims that the company's move is the outcome of two antitrust decisions made by the Competition Commission of India (CCI). The developers said that the commission structure of Google stifles innovation in a price-sensitive market like India. Google has already been hit with two fines by the Indian regulatory authority. Update Google Play Store on Android and Keep Your Apps Update

Update Google Play Store on Android and Keep Your Apps Update

Google was ordered by the CCI to lift limits on in-app purchases and the use of third-party payment processing services by app developers. This directive was made public a week ago. Antitrust authorities fined the company 936.44 crores ($113 million) for abusing its dominant market position in relation to Play Store rules. The CCI has released its assessment after consulting with a number of industry players including smartphone producers, including Samsung, Xiaomi, and Microsoft. The second penalty imposed on Google for anti-competitive Android-related acts is worth an additional 1,338 crores ($162 million). For developers that wish to sell digital items inside their apps, using Google Play's billing system is a need. Similarly, anyone who wants to sell goods or offer subscriptions to customers on the App Store must make use of Apple's billing system. Around 15 to 30% of the money made by app purchases is split between Google and Apple by the developer. India fines Google $113 million for abusing Play Store dominance.

India fines Google $113 million for abusing Play Store dominance.

The billing system is required for all purchases, including digital goods, subscription services, in-app features and content, and cloud-based apps and services, according to Google's blog post. When renting or selling tangible items like electronics, apparel, and food, as well as tangible services like gym memberships, travel, and meal delivery, app developers can do without the billing system. According to Google, nearly all software developers have complied with the rule. Apps utilizing an alternate in-app payment system would have to be taken down otherwise. The company also made it clear that the billing system cannot be used for peer-to-peer payments, online gambling, or any other content that violates Google's Payments Center Content Policies.

By Fakun Gram

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