Google’s Billing Policy
Google Play Store hosts millions of apps, many of which generate significant revenue for their developer companies. But did you know that Google takes a cut from the earnings of these apps? When a developer publishes their app on the Google Play Store and earns revenue from it, they are required to pay Google a fee ranging from 15-30%. This fee applies to in-app purchases, app downloads, and subscriptions (such as premium services like Shaadi.com).
In-app purchases and subscriptions on the Google Play Store are subject to Google’s billing system. Some developer companies have expressed dissatisfaction with paying fees to Google, labeling its policy as unfair. Google asserts that its policy applies equally to all developers and aids in improving and securing the Google Play Store. Google claims that these apps are making money on other platforms but are not compensating Google.
Challenges for Indian Companies
The Competition Commission of India (CCI) had previously directed Google to abolish its old system of imposing 15 to 30 percent fees. Subsequently, Google began imposing fees ranging from 11 to 26 percent. Companies then filed a petition against Google in the Supreme Court, demanding an injunction on the fees. The next hearing on this matter is scheduled for March 19th.
Apps Affected by the Action
Among the 10 apps that Google had previously removed were Bharat Matrimony, Balaji Telefilms’ Altt, Shaadi, Matrimony.com, Truly Madly, Kuku FM, and Quack Quack.
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