A top company executive of Google has noticed that the small Indian app developers and startups that provide video, audio, and book content may have to pay about 6% commission to the Google Play store. All this will follow a very different approach as it allows the alternatives to its billing systems to be announced by the technology giant in select markets. This play store commission will come into effect from October 21 in India.
Apart from this, other apps that are offering the game content will have to pay about 11% commission if only they adopt an alternative billing mechanism to the Google Play billing system. Apart from this, the 6% and 11% commission will be applicable on the non-gaming applications if they are earning less than $1 million in revenue per year.
It is obvious that it will make us see a significant climbdown by Google from its 30% commission. They also said that it will charge since the announced date as its Play store commission policy from two years ago. They also provoked a concerted pushback from the local startup ecosystem and triggered a probe by the Competition Commission of India on the issue that is now in its final stages, according to the people in the know.
FAQ
- Which kinds of applications have to pay the commission?
Ans. Those who are earning less than $1 million in revenue per year.
- What is the percentage of the tax?
Ans. 6% and 11%
- When did the commission come into effect?
Ans. 31 October