New Delhi: Google faced strong backlash from developers globally after it announced it will enforce its own in-built billing system, which charges a 30 per cent fee to all app developers.
According to the IAMAI, as a payment aggregator, currently unlicensed but soon to be licensed in India, Google Billing System can choose which payment instruments it would work with and which ones it would not.
“The new draft RBI guidelines on payment aggregators, too, allows for that freedom. The compounding factor for many founders is the current revenue sharing policy of the Play Store,” it said in a statement.
Google said in a blog post on Monday: “We have clarified the language in our payments policy to be more explicit that all developers selling digital goods in their apps are required to use Google Play’s billing system.
The tech giant added it would give app developers a one-year grace period to adopt the system, while it will start enforcing the billing system on the Play store’s new apps from January 20, 2021.
“Just because Google owns the gate and the gateway to the digital ecosystem of this country, they should not act arbitrarily and enforce their rules and regulations which are contrary to our country’s laws,” said Vishwas Patel, Founder, CCAvenues and Chairman, Payments Council of India.
“Also, they cannot force Indian apps developers/owners selling digital services to compulsorily use the Google Billing and payment system and charge 30 per cent MDR,” he added.
