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    IAMAI calls founders meet to discuss Google's decision to make its billing system compulsory for in-app purchases

    Synopsis

    Google has made it compulsory for developers to use Google Play Billing system as the only method of payment for in-app purchases. The policy is applicable for purchase of digital goods and not physical goods.

    Google---APAP
    IAMAI said prima Facie, Google’s announcement today even if legal is certainly not innocuous.
    BENGALURU: Internet and Mobile Association of India (IAMAI) has called for a meeting of founders to address Google’s latest announcement, which has sent shockwaves across the startup community.

    Google has made it compulsory for developers to use Google Play Billing system as the only method of payment for in-app purchases. The policy is applicable for purchase of digital goods and not physical goods.

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    "The Indian Founders’ community is on fire at the announcement of the policy. The primary likely reason is perceived dominance of Google Billing System," said IAMAI in a statement.

    It added that as a payment aggregator, currently unlicensed but soon to be licensed in India, Google Billing System can choose which payment instruments it would work with and which ones it would not. The new draft RBI guidelines on payment aggregators, too, allows for that freedom.

    "The compounding factor for many founders is the current revenue sharing policy of the Play. The "current payment policy link" also explains that Google Play has a revenue sharing model with all apps, which is 30% of all transactions," said IAMAI.

    “Just because Google owns the gate and the gateway to the digital ecosystem of this country, they should not act arbitrarily and enforce their rules and regulations which are contrary to our country’s laws," said Vishwas Patel, Founder, CCAvenues and Chairman, Payments Council Of India.

    He added Google cannot force Indian Apps developers / owners selling digital services to compulsorily use the Google Billing and payment system and charge 30% merchant discount rate.

    IAMAI said prima Facie, Google’s announcement today even if legal is certainly not innocuous.

    It said IAMAI is seeking a meeting with its Founder members to understand their concerns and to resolve them.
    The Economic Times

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