Google has temporarily put a hold on enforcing its Google Play Store billing system for in-app transactions on software developers in India.
The tech giant already delayed the payment system requirements applied to Indian app creators last year and once again this year, with the deadline supposed to be on Oct. 31, Monday.
Google's Response to CCI Verdict
According to The Indian Express, the company's decision results from two antitrust rulings issued by the Competition Commission of India (CCI).
"Following the CCI's recent ruling, we are pausing enforcement of the requirement for developers to use Google Play's billing system for the purchase of digital goods and services for transactions by users in India while we review our legal options and ensure we can continue to invest in Android and Play," said in a blog post via Google's website.
However, the blog also stated that the Google Play Billing system continues to apply for in-app digital content purchases for foreign customers.
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Charges on Google
In a price-sensitive market like India, the commission system of Google stifles innovation, said the developers. So far, Google has received two penalties from the governing body in India.
A week ago, the CCI issued a ruling that Google must remove restrictions on in-app purchases and the use of third-party payment processing services for app developers. The corporation was penalized ₹936.44 crores ($113 million) by the antitrust authorities for abusing its dominating market position with regard to the Play Store regulations.
After speaking with several industry stakeholders and smartphone manufacturers, including Samsung, Xiaomi, and Microsoft, the CCI has published its judgment. The second fine against Google is worth an additional ₹1,338 crores ($162 million) for anti-competitive Android-related actions.
The Google Play Store Billing System
The use of Google Play's billing system is mandatory for developers who want to sell digital goods inside their apps.
In a similar vein, those who want to sell items or give subscriptions to consumers must utilize Apple's billing infrastructure on the App Store. Both Google and Apple take a cut of the revenue, around 15 to 30%, generated by app purchases from the developer.
As per Google's blog post, the billing system is necessary for all purchases, such as digital items, subscription services, app features and content, and cloud-based apps and services.
Meanwhile, app developers can ditch the billing system if they are engaged in rentals or sales of physical goods like gadgets, clothing, and food, as well as physical services like gym memberships, plane tickets, and food delivery.
Google stated that almost all software creators have cooperated with the requirement. Otherwise, apps using an alternative in-app payment method would need to be removed.
The firm also clarified that the billing system must not be for online gambling, peer-to-peer payments, and other material considered inappropriate by Google's Payments Center Content Policies.
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This article is owned by Tech Times
Written by Trisha Kae Andrada
