Indian startups are unhappy with Google Play Store for forcing apps with in-app purchases to use its “expensive and unaffordable” billing system. Google levies a 30% commission against 1.5-2% levied by external gateways.
“It will badly affect us, 30% is tax, cannot be called commission!” said Snehil Khanor, CEO of TrulyMadly, dating app. “They say we provide an ecosystem but we get the downloads through ads. For many small companies, it can be an existential threat.”
“Let me clarify. There are other ways in which they can go find the subscription,”
“They have multiple store options..multiple ways to sell the subscription option. There are several Indian developers who have websites where they sell subscriptions. There are people who are using multi-platform ways where they’re selling. All of that is possible.”, said Purnima Kochikar, director, business development, Google India.
“A 30% commission on in-app payments is exorbitant and could kill so many businesses in India,”. “While an Indian app store is a logical alternative, India requires a broader policy framework to find a more permanent resolution”, Harshil Mathur, Razorpay said.
Google has control over many layers between customers and their service providers as more than 90% people use Android phones, the Internet and Mobile Association of India (IAMAI) said in a release.
“The Indian founders’ community is on fire at the announcement of the policy. IAMAI is seeking a meeting with its founder members to understand their concerns and to resolve them,” the association noted.
