From October 31 Indian app developers and startups offering videos, audio content, or e-books may have to pay only a 6 per cent commission for the in-app purchases on Google Play Store, a report by Economic Times (ET) stated. This comes after Google announced a change in its billing system allowing the developers to pay via mechanisms other than the Google Play billing system.
Other apps will have to pay around 11 per cent commission if they choose to pay from other platforms, the report added.
The latest commission rates are considerably lower than the original rates introduced by Google while announcing the Play store policy two years ago. It currently charges a 30 per cent commission from the developers and startups.
Also Read: Google’s new policy to filter out suspicious ratings, reviews on Play Store
Several startups had approached the Competition Commission of India (CCI) to launch a probe. According to ET, the probe is in its final stages.
An expert was quoted in the ET report as saying that when a customer now opts for an alternative billing option, Google will have to forego the cost of processing payments. It approximately stands at 4 per cent.
“So, in user choice billing, if the user chooses the developers billing, as opposed to Google Play Store billing, the service fee will be reduced by 4 per cent, which is the kind of generalised cost of doing the payment processing. But other than that, all the other services are the same,” he told ET.
Apart from India, Google is also introducing the new system to Australia, Indonesia, Japan, and European Economic Area.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.