Google defers deadline for 30pc cut on Play Store billing to April 2022; to meet Indian startups over concerns

Amidst backlash from the Indian startup ecosystem, Googleon Monday said it had deferred its earlier controversial decision of charging 30 percent commission on apps that have subscription services for digital goods on its Play Store in India till April 2022.

In a blog post, Google said, “First and foremost, we want to reiterate that we are deeply committed to the success of the Indian ecosystem — we do not succeed unless our partners succeed. Being mindful of local needs and concerns, we’ve taken the following immediate steps.”

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The steps include setting up listening sessions with leading Indian startups to understand their concerns more deeply, and setting up workshops to help clear any additional questions about Play Store policies.

The third, and the most critical point, Google said, “We’re also extending the time for developers in India to integrate with the Play Store billing system to ensure they have enough time to implement UPI for the subscription payment option that will be made available on Google Play. For all apps that currently use an alternative payment system, we set a timeline of 31st March, 2022.”

On September 29, Alphabet-owned Google announced changes in its policy on how it charges a commission for apps, which have subscription services on its Play Store, and wanted everybody to use its payment gateway for the payments.

This meant a 30 percent commission charge on any app with a subscription service, which was a steep price. Indian startups protested against the Google policy, and also sought the Indian government's intervention.

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At the same time, startups also sought to build an Indian app store, which would give autonomy on how they could run apps.

“At Google, we have always had a long and deep commitment to India, and working alongside startups and developers has given us a more meaningful understanding of how technology can be more helpful. And, so we remain committed to engaging with the community, to listen, and find the right ways to help the Indian ecosystem grow and flourish,” Google said in the blog post.