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Amid reports of Indian apps’ unhappiness over Google Play Store’s new billing policy and its levy of a 30 percent commission on in-app purchases, apps have issued a clarification.
Speaking with The Quint, the CEO of Indian dating app Truly Madly has specified that Google has only deferred the implementation of its new billing method and not the 30 percent commission it charges.
Snehil Khanor, Co-Founder and CEO of Truly Madly, clarified that some media reports are incorrectly stating that Google has deferred its decision to charge a 30 percent commission on in-app purchases for apps listed on the Play Store.
Google, facing backlash from apps, has decided to defer its new billing system by a year, to 31 March 2022, for existing apps. Google’s Vice President of Product management Sameer Samat also stated in an official blog on 28 September that the company will hold more talks with Indian start-ups on their concerns.
“...for those who already have an app on Google Play that requires technical work to integrate our billing system, we do not want to unduly disrupt their roadmaps and are giving a year (until September 30, 2021) to complete any needed updates,” Samat’s blog stated.
ISSUES FACED BY INDIAN APPS
Amid growing calls among developers and founders for an Indian app store, Paytm, on Sunday, 4 October, announced the launch of its ‘Mini App Store’. The launch was accompanied by a pledge to help homegrown start-ups scale and “Indian developers to take their innovative products to the masses.”
Sudhir Naidu, founder and CEO of Troop Messenger, a team collaboration and workplace communication platform, told The Quint, “Though this policy is in place, it was not enforced effectively. It kept lot of options open for the developers (who are selling digital goods and in-app purchases) to circumvent the billing and not pay this commission. What Google now says is that it will start to enforce by March 2022, for India.”
Naidu, like hundreds of other apps who have raised the issue, feels the commission also needs a relook. “Thirty percent commission is too steep, and start-ups will not be able to withstand this additional burden. As per me, alternatives will rise up in coming 12-18 months and if Google senses this in time, it will change its policy or defer this indefinitely.”
Khanor adds that while other billing gateways like PayTm and PayU charge 1 to 2 percent commission, Google’s 30 percent cut takes a toll on their revenues and ability to grow.
“Others are charging 1-2 percent for transactions, they credit the money within 1-2 days while Apple and Google send the money once in 15-20 days which affects our cash flow,” Khanor states.
WHY THE DEMAND FOR AN INDIAN APP STORE?
Among the primary reasons is the market dominance of Google’s Android Operating System (OS), which includes the Play Store. Google’s Android OS currently commands over 90 percent share of the Indian smartphone market.
According to reports, a group of about 15 app founders also held a virtual meeting with officials of the Competition Commission of India to apprise it of their concerns regarding Google’s Play Store.
Paytm’s Sharma hasn’t just stopped at launching an apparently rival ‘app store’. According to Medianama’s report, he also set up Zoom calls with 56 founders to discuss concerns surrounding Google.
That’s not all. On Saturday, 3 October, 35-40 Indian founders held an hour-and-a-half long virtual meeting with the Union Electronics & IT Ministry to “discuss the grievances regarding App Store’s billing policy, its 30 percent commission,” CNBC reported.
“I'm confident that the government will work with tech industry bodies and come out with a policy framework, so some big indigenous tech players will venture into building an app store. Government's role should just remain as a regulator,” Troop Messenger’s Naidu told The Quint.
“Also remember, we should not have one app store but many which can compete among themselves, so the customer gets the best.”
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