Google gives up on enforcing its in-app Play Store billing system in India for now
In October 2020, Google announced a crackdown on in-app purchases affecting apps and games on the Play Store that did not rely on the Play billing system. In India, over 150 companies allied against the payment restrictions, forcing Google todelay the in-app purchase requirement in the countryuntil March 31, 2022, before extending it to October 31, 2022. A week before the deadline, the Competition Commission of India (CCI) slapped Google with a $113 million fine and an order to allow developers to use third-party payment processing services for in-app transactions and app purchases. Now, the big G has silently decided to delay the enforcement of the new policy in the country.
As a part of the investigation, the CCI interviewed companies like Xiaomi, Realme, Samsung, Paytm, and others. In its report, the regulatory body accused Google of abusing its dominant position over the Play Store and found that the company not using the Play billing system for YouTube and its own apps was an “imposition of discriminatory conditions” (viaTechCrunch).
While Google reviews its legal options and looks to appeal the decision, it has decided to pause the enforcement of the Play billing system for in-app transactions and app purchases in the country. This means app developers in the country can continue using third-party payment methods in their apps.
India is not the only country where Google has come under scrutiny for forcing the Play Store billing on developers. To appease regulators worldwide, Googleannounced the “User Choice Billing” systemin March 2022, allowing app developers to use alternative payment systems in their apps as long as they paid a commission to the company.
For now, the alternative billing system is in the pilot stage and is available to app developers in Australia, India, Japan, and Indonesia. Developers inSouth Korea can already usean alternative IAP billing system in their apps.
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