- Google postpones the enforcement of its new Play Store billing rule in India
- Over 150 startups in India’s app market forged an informal coalition
- Startups worry over the 30% charge Google plans to mandate on its App Store
Google states that its current billing policies only apply to less than 3% of all apps on Google Play. Of those apps, 97% already use Google Play’s billing library. That means there’s only a small percentage of apps that will need to come into compliance under the clarified terms.
Why is Google mandating a 30% cut?
Google announced its Google Play billing policies updations. This was to clarify the different transactions subject to Google’s commissions on in-app purchases. While the update doesn’t affect the policy’s intention, it increases Google’s profit. The policy will impact many developers who don’t use Google Play’s billing system. In addition, there will be changes in Android 12. These changes will make it easier for users to install and use third-party app stores as an alternative to Google Play.
Google is setting up listening sessions with leading Indian startups to understand their concerns more deeply. They will be setting up Policy Workshops to help clear any additional questions about Play Store policies.
Google is also extending the time for developers in India to integrate with the Play billing system, to ensure they have enough time to implement the UPI for subscription payment option that will be made available on Google Play — for all apps that currently use an alternative payment system.
Why are Indian startups fighting google’s ‘Monopoly?
The growing list of founders expressed deep concerns about Google’s “monopolistic” hold on India. This was also because India is home to one of the world’s largest startup ecosystems. The founders discussed the allegedly unfair and inconsistent enforcement of the Play Store’s guidelines in the country.
The list of entrepreneurs includes high-profile names such as:
Vijay Shekhar Sharma, co-founder of Paytm and Deep Kalra of MakeMyTrip. Executives from PolicyBazaar, RazorPay, and ShareChat were also on the list.
What were the common views of executives from India?
Many executives from various startups in India attended a call on Tuesday to discuss the way forward. The majority of these app creators came to the conclusion that Google’s 30% cut is irrational.
As google reaches more internet users than any other firm in India and commands 99% of the nation’s smartphone market, has stumbled upon an odd challenge in the world’s second-largest internet market: scores of top local entrepreneurs.
The possibility of an Indian app store seems very close. This is because of the Atmanirnbhar Bharat mission that will benefit India’s mobile app industry.
Why Google is changing its policies?
Several businesses in India have long expressed concerns with the way Google has enforced its policies in India. But the matter escalated last month after the company temporarily pulled Paytm app from the Play Store for promoting gambling.
Google said Paytm had repeatedly violated its policies, and the Play Store prohibits apps that promote gambling in India. Google has sent notices about warnings over gambling to several more firms in India in recent weeks.
India always has been a profitable ground for Google. And since India has been Google’s largest user market – there is a place for exploitation within the same.
This policy is a direct response to the scrutiny Google has received in a decade in India. It is the largest user market. Despite this, it generates very little revenue compared to other countries.150+ startups formed an informal coalition last week to fight the company’s stronghold on the Indian app ecosystem.
