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Google tax may drop in India

Google tax may drop in India

Google is currently under fire for its anti-competitive procedures and restrictions, and the new Indian changes affecting the Play Store may set a precedent at the international level. The search giant was reprimanded by India’s antitrust authority last year Competition Commission of Indiaand since Google’s appeal was rejected by the court the other day, changes must be made in the world’s largest Play Services market (Google is not present in China).

From now on, manufacturers in India can decide individually on the licensing of pre-installed applications, and it is not mandatory to upgrade all basic Google software, in fact: they can be removed afterwards. Alternative application stores that have been installed from the APK file until now may appear in the Play Store, and when setting up a new phone, you can choose from several search services just as in Europe. The most important change, however, is the official support of alternative billing services: in the case of apps, content, games and all kinds of in-app purchases, alternatives to the Play Store’s own billing system will also be available from February, if this is integrated by the developers.

It’s important to note that a significant portion of Google’s (and Apple’s) revenue comes from a share of content and purchases collected by many developers and publishers. The tapping of in-app and game purchases is also given a really bad name by Indian developers, of course American companies insist tooth and nail on pocketing the share through their own transaction system. But now the CCI’s decision in the populous country has hit a hole in this: billing alternatives may appear from next month.

However, the details of this and the issue of Google’s tax are not yet clear, and it is worth adding that although the American company was also forced to do the same in South Korea, the search giant only takes a 4% less share from the developers’ pockets there, so it is not necessarily worth it there and develop a rival invoicing system. In the EU, a decision was also made to reduce Google’s stake and the possibility of alternative billing, and the search giant’s position in India is the same: these revenues guarantee the development, stability and security of the Play Store and the Android operating system, so they are appealing against the decision. But the above changes will come into effect regardless, and this may encourage other markets to make similar or even stricter decisions.

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