Google has emerged victorious in the Supreme Court, securing the right to enforce Play Store rules on Indian developers. The tech giant’s move is aimed at cultivating a fair and flourishing ecosystem within India’s app development community by removing non-compliant apps and promoting equal treatment for all developers.
In a recent blog post, Google expressed its belief that “Android and Google Play have helped India transform into an app-first digital economy, providing millions of mobile users unprecedented choice and boosting India’s innovative startup and developer sectors.” Despite this, the Play Store has been a source of contention between major app developers in India and Google.
Represented by the Alliance of Digital India Foundation (ADIF), a few Indian startups had raised concerns about the Google ‘tax,’ alleging an 11-26% commission on in-app purchases. The Competition Commission of India (CCI) imposed a Rs 936.44 crore fine in October 2022, emphasizing the freedom to use third-party billing services and preventing discriminatory actions against developers.
With the Supreme Court ruling in its favor, Google is now enforcing adherence to Play Store regulations. “After giving these developers more than three years to prepare, including three weeks after the Supreme Court’s order, we are taking necessary steps to ensure our policies are applied consistently across the ecosystem,” stated Google in the blog post.
The enforcement includes the potential removal of non-compliant apps from Google Play. Developers are encouraged to resubmit their apps by selecting one of three billing options outlined in Google’s Payments Policy. However, Google noted that some companies, including well-established ones, have chosen not to comply, seeking interim protections from the court.
According to Google, only 3% of developers in India engage in selling digital goods or services and, therefore, are subject to a service fee. The majority pay 15% or less, the lowest among major global app stores. Google emphasized the importance of preventing a small group of developers from receiving preferential treatment, asserting that it creates an uneven playing field and places other apps and games at a competitive disadvantage.
