Google has extended by another seven months to October 31, 2022 the deadline for app developers to integrate with its Play billing system in India, the internet giant said on December 10, as it faces increased scrutiny over its app store practices.
Google said the deadline was being extended from March 31, 2022 to help developers with necessary product support for recurring payments through UPI, wallets and other systems in the backdrop of India's latest guidelines.
“We recognise the unique needs of the developer ecosystem in India and remain committed to partnering with developers in India on their growth journey,” a Google spokesperson said while announcing the extension.
“In October 2020, we had announced 31st March 2022 as the timeline for developers in India to integrate with Play’s billing system. We are extending this to 31st October 2022 to provide developers in India more time and the required product support for recurring payments…,” the spokesperson said.
Similar to rival Apple, Google requires developers using its Play Store for apps selling digital goods and services to use its own billing system and pay 30 percent of the sales generated as a service fee.
While Apple has strictly enforced the guideline, Google was lax until October 2020 when it announced it will proactively enforce the policy beginning September 30, 2021.
The move faced a intense backlash from Indian developers, as a result the tech giant delayed the implementation to March 31, 2022 in the country. The deadline for other markets ended on September 31, 2021.
In March 2021, Google globally reduced the service fee to 15 percent for the first $1 million revenue developers earned using the Play billing system every year. The reduced fee came into effect in July 2021.
In October, Google lowered its fees for all subscription-based services to 15 percent from 30 percent from January 1, 2022.
Only 3 percent of developers pay a fee and of those, 99 percent globally qualified for a service fee of 15 percent or less, the company said.
Alliance of Digital India Foundation (ADIF), a New Delhi-based thinktank comprising of more than 460 entrepreneurs and startups, said this move provides a short-term relief to developers but doesn't resolve the larger issue of 'gatekeeper tax' or allowing other payment choices to them.
“The reality is that app owners have been in a very tough spot as they are unsure if they should unwillingly comply with Google's new policies and be hopeful of a CCI's intervention on the interim relief petition for maintaining the status quo. Google's deadline extension certainly gives them more time but doesn't take away their uncertainty.” Sijo Kuruvilla George, Executive Director, ADIF.
The thinktank said it hopes Google makes use of this additional time to "actually listen to the problems of app developers and come out with a policy that is fair to all applications on the Play Store".
Google is facing a probe from India's antitrust body Competition Commission of India (CCI) over the mandatory use of its Play Store’s payment system for paid apps and in-app purchases.
The commission is of the view that policy is unfair as it restricts the ability of app developers to select a payment processing system of their choice.
On October 11, Moneycontrol reported that ADIF had moved CCI to seek interim relief against the implementation of Google Play Store commission till the investigation into the tech giant’s abuse of dominance is complete.
Facing global scrutiny
Apart from India, Google and Apple are facing a massive pushback over their app marketplaces in several other countries, including the United States.
In September, South Korea's parliament also approved a bill that bans app store operators like Google and Apple from forcing app developers to use their billing systems for in-app purchases.
In response, Google said it would enable alternate billing options, alongside its Play's system, for users in South Korea. These transactions would also be subject to a service fee but at a 4 percent rate reduction, the company said in November.
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