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After facing backlash from developers, Google on Tuesday said it was slashing the commission it charges on Play Store from 15 per cent to 12 per cent for users in the European Economic Area (EEA). Google announced non-gaming app developers can offer their users in the EEA an alternative to Google Play’s billing system when they are paying for digital content and services.
In India, the charges will continue to be at 15 per cent even as the Competition Commission of India is probing Google for alleged unfair practices.
Google had initially announced a 30 per cent fee, which saw huge criticism. A number of Indian app developers have formed an alliance to protest against Google’s move. The fee is on developers that sell in-app digital goods and services on Google Play (example, gems in a game).
The industry body, Alliance of Digital India Foundation (ADIF), which represents over 400 start-ups and 200+ institutions, had approached the Competition Commission of India (CCI) seeking interim relief from Google’s Play Store commission and a restriction on letting start-ups and app developers have the choice to use other payment gateways starting from March 2022.
Industry experts are hoping that Google will extend the revised rules to India soon.
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