Google has provided an overview of the impact of its investments in Android and Google Play on India’s app ecosystem, highlighting the value it brings to app developers and the role of Google Play’s service fee in sustaining this value.
Google emphasizes that most Android devices come preloaded with multiple app stores, and users have the flexibility to install additional ones. In India, consumers rely on a combination of app stores and alternative methods like sideloading to access apps.
Therefore, Google’s objective is to consistently offer the best platform, tools, and resources to foster competition in the market and support the success of developer businesses.
In the Indian market, Google Play enables developers to:
- Ensure a safe and secure user experience by utilizing the world’s largest malware scanning system, which assesses over 125 billion apps on a daily basis.
- Reach a vast audience of 2.5 billion monthly active users in 190 markets.
- Gain valuable insights about their audience and identify growth opportunities using robust data and analytics dashboards available in the Play Console.
- Conduct experiments, beta test new features, optimize store listings, analyze performance, and more to enhance their apps.
- Monetize their apps and in-app content conveniently and securely in over 180 global markets through Google Play’s commerce platform, which provides easy access to local payment methods like UPI and recharge codes.
- Harness Google’s innovative AI advancements to showcase apps effectively, facilitate users in discovering new titles, and leverage other recent updates announced at Google I/O.
- Additionally, new monetization tools and features have been introduced to help developers maximize their revenue using Google Play’s commerce platform.
Google emphasizes that developers in India and worldwide have found Google Play to be a valuable tool for building and growing their businesses. The sustainability of Google’s investments in Android and Google Play relies on the service fee model that supports these endeavors.
Google highlights that its service fees on Google Play are the lowest compared to other major app stores:
- Google Play’s service fees are only applicable to developers who sell digital goods or services within their apps.
- Currently, only 3% of developers in India fall into this category and are required to pay a service fee.
- For the majority of developers, the fees are 15% or less, which is the lowest rate among major app stores. This is made possible by the various pricing programs offered by Google Play.
- Out of over 200,000 Indian developers on Google Play, Google estimates that less than 60 developers would pay a service fee higher than 15%.
- Furthermore, if a user pays through an alternative billing system, the fee is reduced by an additional 4% to ensure fairness.
All developers in India need to implement one of 3 billing options
In 2020, Google clarified its Payments policy, giving developers in India ample time to make required app adjustments. Google said that it is in compliance with the October 2022 order by the Competition Commission of India (CCI). User choice billing has been extended to all Indian developers, and the updated policy became effective on April 26, 2023.
Developers can choose among three billing options: integrating Google Play’s billing system, offering an alternative billing system alongside Google Play’s, or operating on a consumption-only basis without a service fee. The majority of developers worldwide have already made their choice, says Google.
For Indian developers who have not implemented any of these options, Google will take appropriate measures to ensure fair policy implementation. Google said that it is remains committed to complying with local laws and cooperating with relevant proceedings.
Announcing the update, Google posted:
We want Indian apps to do well, and we hope Google Play will make more users happy by giving them useful apps. We also want to help more developers grow their businesses worldwide, and we promise to do this in a safe and secure way.