Google has announced another extension to the deadline for Indian app developers to integrate their payment systems with the Play Store’s billing system. Initially set for March 31, 2022, the deadline has now been pushed to October 31, 2022, as reported by Money Control.

Google’s Statement

A Google spokesperson emphasized the company’s commitment to supporting the Indian developer ecosystem. The decision to extend the deadline aims to provide developers with ample time and necessary support for integrating recurring payments through user-friendly systems like UPI and wallets. This extension also considers the changes to India’s recurring digital payments guidelines.

Second Extension

This marks the second time Google has extended the deadline for Indian app developers using alternative payment systems. Last year, Google faced significant backlash from the Indian startup community over its proposed enforcement of a 30% app store commission fee. In response, Google extended the deadline to March 31, 2022.

Implications for Developers

Google’s policy mandates that apps offering digital goods and services must use the Play Store’s billing system and pay a 30% commission for in-app purchases. This applies to various digital offerings, including virtual currencies, game add-ons, subscriptions, and ad-free versions.

While Google initially maintained the 30% commission, it later reduced it to 15% for the first $1 million in revenue generated through the Play Store’s billing system annually. This reduction, effective from July, aimed to alleviate financial burdens on smaller developers.

Recent Changes

In October, Google further reduced the service fee for Play Store apps offering subscriptions to 15% from 30%. This fee adjustment, effective from January 1, 2022, also applies to ebook and music streaming apps, which now face a 10% subscription fee.

Despite the deadline extension, Google has not altered its billing system. The company continues to face criticism alongside Apple for its app store fees and mandatory billing structures. Notably, South Korea recently passed legislation banning Apple and Google from prohibiting app developers from using alternative billing systems. In India, Google is under scrutiny from the Competition Commission over its mandatory billing system in the Play Store.

In conclusion, while the deadline extension offers Indian developers more time, ongoing scrutiny and regulatory changes indicate a shifting landscape for app store policies and billing systems worldwide.