Following a decision by India’s antitrust regulator, Alphabet Inc.’s Google (NASDAQ:GOOGL) is suspending the execution of a rule that forces app developers there to use its exclusive billing system for selling digital items.
Google had previously given developers in India until October 31 to integrate their apps with its Google Play billing system, which charges a 15%–30% fee on each transaction.
However, the Competition Commission of India (CCI) fined Google $113 million last week and ordered Google to allow app developers to use third-party billing or payment processing services in India.
In a website update to developers on Tuesday, Google said the requirement to use its billing system still extended to consumers outside the country. It also said it was looking into legal possibilities in India.
According to Reuters, Google was preparing a judicial challenge last week to stop a different CCI decision that required a change in how it approached the Android operating system.
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The fees levied by Google and Apple’s (NASDAQ:AAPL) mobile app stores are criticised as being excessively exorbitant and costing developers billions of dollars annually. Both parties have reduced costs frequently and stated that they are required to pay for a stable and secure mobile ecosystem.
“The choice we made today helps safeguard our earnings. Because it’s bad for Indian digital companies and equates to a digital tax for us, we hope Google implements this permanently,” said Murugavel Janakiraman, the CEO of the BharatMatrimony Group, which operates a number of apps that aid in dating.
Google’s Android mobile operating system powers about 97% of India’s 600 million smartphones, and entrepreneurs have banded together in the past to claim that the payment policy affected their companies.
For its part, Google has started to test out lower-commission alternative payment methods in several nations, including India.