Google defers Indian in-app commission fees after startups complain

BENGALURU (Reuters) – Alphabet Inc’s Google has extended its deadline for Indian app developers to comply with a new billing system by six months to March 31, 2022, the U.S. tech giant said in a blog post on Monday.

Google also said https://india.googleblog.com/2020/10/google-plays-billing-system-update.html it was setting up “listening sessions” with leading startups to understand their concerns and establishing “policy workshops” to clear any additional questions after it said it will more strictly enforce a global policy and charge a 30% commission fee for in-app purchases, irking some developers.

In recent days, many startups in India have banded together to consider ways to challenge Google, including by lodging complaints with the government and courts. They are upset about the 30% commission fee and say several other Google Play Store policies hurt their businesses.

Google said the policy is not new and more than 97% of developers with apps on its app store already comply with the policy.

“To be clear, the policy only applies if a developer charges users to download their app or they sell in-app digital items,” it said.

Globally, app developers have said 30% is excessive compared with the 2% fees of typical credit card payments processors. Google and rival Apple , which charges a similar fee, have said the amount covers the security and marketing benefits their app stores provide.

(Reporting by Nivedita Bhattacharjee and Chandini Monnappa in Bengaluru; Editing by Rashmi Aich and Christopher Cushing)