App developers move against Google's PlayStore policy change

Bengaluru: Google's plan to mandate Android app developers to only use the Google Billing System (GBS) for payments will go to the Competition Commission of India (CCI)'s scrutiny.

The Industry body Alliance of Digital India Foundation (ADIF) has approached the CCI to get an interim relief from Google's new PlayStore policy, which is expected to be effective from March 2022.

The policy will demand app developers to make all payments through the GBS, which will incur a 30 per cent commission for all transactions on the Google Play Store.

The ADIF announced its filing a petition before CCI for interim relief in a statement. Reports said that the CCI is also looking into the issue to ascertain potential abuse of dominance by Google in the app market.

ADIF said that the GPS 30 per cent commission on transactions as against 2 per cent commission by other payment processing systems will have a "destructive effect on the operating margins of a large number of start-ups and make their business models infeasible."

It also expressed concerns that the policy change will leave app developers and users with reduced choices, in effect, harming the country's innovation ecosystem by disrupting the cost structures and margins of multiple industries.

The Competition Commission of India, a watchdog against the practice of competitive pricing, is of the view that the policy will compel app developers to only use the GPS, depriving them of selecting a payment processing system of their choice.

Previously, a similar petition has been filed against Apple, alleging anti-trust violations over the issue of in-app payments and purchases.