Google vs CCI: Android app developers offered third-party billing in India

Google will allow app developers to offer an alternate billing system for in-app purchases within India starting April 26, 2023, according to the latest update on the company’s support page. This move complies with recent antitrust directives issued by the Competition Commission of India (CCI). As part of this new policy, app developers will be allowed to offer an additional billing system to users in addition to Google Play when purchasing in-app digital content.

Under the current policy, Google requires developers to use its payment system for in-app purchases, taking a 30 per cent commission on all transactions. However, this policy has been a source of controversy and has drawn the ire of many developers who feel that the commission is too high and that Google has too much control over the app ecosystem.

With this new policy, developers will be able to offer an alternate billing system to users in addition to Google Play. This will give them more flexibility in monetizing their apps and reduce their reliance on Google's payment system. 

"Google Play’s service fee has never been simply a fee for payment processing. It reflects the value provided by Android and Google Play, and all of the developer services we offer, including app distribution and discovery, the commerce platform, developer tools, analytics, training, and more," the company says on their support page.

Google has drafted 'interim steps' for developers to offer an alternative billing system until it builds proper APIs later in the year that will streamline integration. “Developers that choose to implement an alternative billing system will be required to switch to the company's automated APIs once they become available later this year,” the company’s support page noted.

The move is significant for both developers and consumers in India, as it provides more options for payment and potentially lower costs for users. It also marks a shift in Google's payment policies, which have faced intense scrutiny from regulators around the world.

The CCI has been investigating Google's payment system and has been calling for increased competition and reduced costs for developers. This new policy is a step towards meeting these demands and could lead to more innovation and competition in the Indian app ecosystem. CCI also fined Google over Rs 936 crore last year for abusing its dominant position concerning its Play Store policies.

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