Google extends Play Store billing deadline for developers to Oct 31, 2022

Digital goods on the Play Store have to use its billing system, allowing Google to collect a percentage of in-app purchases as fees

Google in India is extending the timeline for developers to integrate with the Play store's billing system to 31 October 2022, from the 31 March 2022 deadline earlier. 

“We recognize the unique needs of the developer ecosystem in India and remain committed to partnering with developers in India on their growth journey. In October 2020, we had announced 31st March 2022 as the timeline for developers in India to integrate with Play’s billing system. We are extending this to 31st October 2022 to provide developers in India the required product support for recurring payments through convenient user payment systems, including UPI and wallets, and also provide them more time in light of the changes to India’s recurring digital payments guidelines,” said a Google spokesperson on Friday.

The issue cropped up in 2020 when Google said its apps that sell digital goods within the Play Store have to use its billing system, which allows the tech giant to collect a percentage of in-app purchases as a fee. 

Indian start-ups and unicorns have been claiming since then that Google abuses its monopoly, enforcing the billing system, and takes a 30 per cent commission on the transactions. All apps distributed on the Google Play Store, that offer in-app purchases of digital goods, need to use Google Play’s billing system.

The Alliance of Digital India Foundation said the deadline extension was a welcome interim move, and calls for introspection that results in fairer policies for all app owners, but called it short-term relief for developers anxiety. 

“The reality is that app owners have been in a very tough spot as they are unsure if they should unwillingly comply with Google’s new policies and be hopeful of a CCI’s intervention on the interim relief petition for maintaining the status quo. Google’s deadline extension certainly gives them more time but doesn’t take away their uncertainty,” said Sijo Kuruvilla George, Executive Director, ADIF.

The core issue for the developers is the gatekeeper tax of 15-30 per cent on a select category of apps and restrictions on the use of other payment options. "We hope that Google makes use of this additional time to actually listen to the problems of app developers and come out with a policy that is fair to all applications on the Play Store,"  George added. 

In order to allow developers time to implement the UPI for subscription payment option on Google Play, the timeline for complying with the billing system was extended in India to March 31, 2022. 

All apps distributed on the Google Play Store, that are offering in-app purchases of digital goods, need to use Google Play’s billing system. Google said earlier, and reiterated again, that this isn't new and its payments policy has always required this. 

Google Play billing has always taken a 30 per cent commission on these transactions, but the announcement in 2020 meant it would enforce these practice more forcefully going forward. It has consistently said this will only apply to less than 3 per cent of developers with apps on Play Store, as 97 per cent are already using the Google Play billing.

Both Google and Apple Stores have been facing backlash from developers in several geographies over their business practices on their app stores. 

Some of Google Play's practices, like commissions, have been a contentious issue with developers in India and globally. In March, it lowered commission for developers when they make $1 million in annual revenue for in-app purchases. From July 1, it said it would slash its 30 per cent billing fee to 15 per cent for developers globally when they make the first $1 million of their annual revenue.

In October this year, Google said that starting on January 1, 2022, it will be decreasing the service fee for all subscriptions on Google Play to 15 per cent from 30 per cent, and for developers offering subscriptions, this means that first-year subscription fees will be cut in half.