According to the most recent update on the company's support website, Google will permit app developers to provide an alternative charging mechanism for in-app purchases within India beginning April 26, 2023. Recent antitrust orders from the Competition Commission of India are being complied with by this action (CCI). As part of this new policy, app developers will be permitted to allow users to pay for in-app digital content using a different billing method in addition to Google Play.
In accordance with the present policy, Google mandates that developers utilise its payment system for in-app purchases and charges a 30% commission on all sales.
However, this strategy has caused controversy and angered many developers who believe that Google has too much control over the app ecosystem and that the commission is too high.
Developers will be able to provide customers with another charging method besides Google Play thanks to this new regulation. They will have greater freedom to monetize their apps and be less dependent on Google's payment mechanism as a result.
In order to provide an alternate billing mechanism until it creates formal APIs later in the year that will facilitate integration, Google has prepared "interim steps" for developers. The company's support page stated that developers that opt to create an alternative billing system will be obliged to switch to the company's automated APIs once they become available later this year.
The decision is noteworthy since it offers more payment choices and may result in lower costs for users, which will benefit both developers and customers in India. Also, it represents a change in Google's payment practices, which have come under heavy scrutiny from international regulators.
The CCI has been looking into Google's payment structure and has pushed for more competition and lower developer fees. The Indian app ecosystem may experience increased innovation and competition as a result of this new policy, which is a step towards satisfying these aspirations. As a result of Google's abuse of its dominant position in relation to its Play Store policy, CCI also fined Google over Rs 936 crore last year.
