06-10-2020

As Google announced its decision to defer the 30 percent commission that it planned to levy on in-app payment to 2022, there is asense of relief among Indian startups. The Indian startup ecosystem is hopeful that this could soon spur the development of an Aatmanirbhar app platform.

Google on Monday announced its decision to defer the commission payment till March 31, 2022, and opened the door for further conversation with Indian app developers.�Listening carefully to developer and user feedback is integral to how we continue to make Android better with each release, and improve how the Play Store works,� Google said in a blog post.

From Bolo Indya, Ludo King, MagTapp, Chingari to Mitron and Betterhalf.ai, here are some China-free Indian apps. The rule of 30 percent commission on in-app payment or subscription services on the app by Google has been prevalent since 2018 but never really implemented.

Snehanshu Gandhi, Co-founder of Ordenado Labs, the parent company of Kaagaz Scanner, said, �While this is right now just a deferment, it is good to know that Google is willing to listen to the Indian developer/startup community and not going with a high-handed approach. Charging 30 percent commission on every in-app purchase is obviously too high, which Google should definitely reduce.�

The main grouse of the startups was that the 30 percent commission is a bit too steep considering the fact that there is an extremely small percentage of consumers in India who are willing to pay for any kind of subscription services on the app. Any such commission will actually make a deep cut into their revenues.

Khabri Co-founder & CEO Pulkit Sharma said, �The extension of the deadline is a positive move. Though it has been delayed by 15 odd months, we should treat this as a moratorium of sorts to look at alternative options should Google stick to the 30 percent number.�
A startup founder on condition of anonymity said, �The deferment gives enough time to Google as well as developers to work out this policy through different strategies.�

At the same time, this could also act as a catalyst to create an Indian owned and operated app platform, which has been a key demand among startups in the country.Vishal Gondal, Founder of GOQii, told YourStory that Google's deferment is an "awesome" development. He also tweeted, "Seeds have been sown. And with delay, you will see an entire forest rise #AtmaNirbharBharat.�