Google and Apple have been facing backlash over their billing policies for apps, as app owners and developers are not happy with the high commissions charged by the tech giants. A recent development in this ongoing battle is the dismissal of an appeal against Google’s billing policy for apps by a two-bench Madras High Court. The appeal was made by a group of startups including Bharat Matrimony, Shaadi.com, and Unacademy, among others, against Google’s dominant position in the app marketplace. While the appeal has been dismissed, the startups have been given a three-week immunity from being de-listed from Google’s platform and have been allowed to pay a lower 4 per cent fee.
This comes after Google was fined Rs 936.44 crore by the Competition Commission of India in 2022 for its anti-competitive Play Store policies. In response to the fine, Google allowed app developers to offer alternate billing options for in-app purchases in India from April 2023. However, the tech giant warned companies of delisting them from its platform if they did not comply with the new billing policy.
Meanwhile, Apple has also faced criticism for its App Store billing policies, with accusations of anti-competitive practices and charging a high commission for in-app purchases made through its own payment system. The company recently introduced a 27 per cent commission as part of the rule changes for its App marketplace, which has also sparked controversy.
Opinions on the topic are divided, with some app owners and developers supporting the easing of policies to incorporate third-party payments, while others argue that the commissions charged by Google and Apple are unfair and hinder their ability to grow and succeed in the competitive app market. The ongoing legal battles and policy changes indicate a significant shift in the relationship between tech giants and app developers, as both parties navigate the complex landscape of app monetization.