Google says in compliance with CCI order, pushes ahead with in-app billing

Google on Wednesday said its Google Play's payments policy is compliant with the anti-trust watchdog CCI's order and it is pushing ahead with plans to enforce the policy in the country.

"In 2020, we clarified the requirements of our payments policy, and developers in India have had considerable time to make the necessary changes to their apps," it said in a blog post.

"We're respectfully following the CCI's October 2022 order, and in compliance with that order, we expanded user choice billing to all developers in India and updated our policy that went into effect starting April 26, 2023."

Google said as the deadline of April 26 had now passed, it would be taking "necessary steps" to get developers to implement one of the billing options it offers.

Three routes are available for app developers - using Google Play's billing system, an alternative billing system called the user choice billing system alongside Google Play's billing system for users in India and operating on a consumption-only basis without paying a service fee, even if it is part of a paid service.

Google said it continued to "comply with local laws and cooperate with local proceedings, as applicable". Applying a service fee is a "sensible model as the platform only makes money when a developer makes money, so our success is aligned with theirs", it said.

It said the service fee it accrues from developers allows it to fund the large investments it has made for the growth of India's app ecosystem. The company insisted that its fees - 15 per cent of lower for most developers - is the lowest of any major app store and a 4 per cent reduction in that fee for those who implement an alternative billing system "fairly reflects that Google Play's billing system has not been used.

Less than 60 of the over 200,000 Indian developers on Google Play currently could pay a service fee of above 15 per cent, Google said, citing its own estimations.

The Competition Commission of India in October slapped a fine on Google and directed the Android maker to give developers the choice of using third-party billing systems in the country.

"Most developers globally have already elected one of these routes. In India, now that the deadline has passed, we are informing developers in the country who have not yet implemented one of these options that we will be taking necessary steps to ensure our policy is applied fairly. We continue to comply with local laws and cooperate with local proceedings, as applicable," Google said.