AIGF opposes Google's move to allow real-money gaming apps
What's the story
Google has indefinitely extended the grace period for existing online real money gaming on its Play Store.
This has drawn sparked backlash from small gaming companies and startups, accusing Google of engaging in arbitrary and anti-competitive practices.
The extension will remain in effect until the next policy update for digital fantasy sports (DFS) and rummy apps.
Google said that they need more time to develop a thoughtful framework for real-money gaming apps, especially in markets without a central licensing framework.
AIGF reaction
Gaming federation expresses disappointment over Google's decision
The All India Gaming Federation (AIGF) has expressed disappointment over Google's decision to extend the grace period.
AIGF CEO Roland Landers criticized the move as arbitrary, anti-competitive, and discriminatory.
He accused Google of gatekeeping and market distortion, stating that "the disregard for Indian law, encouragement of anti-competitive practices, and limiting user choice by a private entity is alarming."
This latest development marks another instance of conflict between BigTech companies like Google and startups in the online digital space.
Past disputes
Google's previous controversies over Play Store policies
Google has previously faced opposition from several Indian startups and digital entities over its Play Store policies.
The Competition Commission of India had ordered Google not to enforce an earlier system of charging 15-30% on in-app payments. In response, Google imposed a fee of 11-26% on in-app payments.
This latest extension of the grace period for real money gaming apps marks another instance where Google's policies have been met with criticism and resistance from the industry.
Fee pause
Google pauses plans for service fee on real-money games
Google is also putting on hold its plans to impose a service fee on real-money games in India and other makers.
The company cited challenges with the lack of a central licensing framework and complexities in developing an appropriate monetization model as reasons for this decision.
Earlier this year, Google had announced that it would allow more types of real-money gaming apps on Play Store and start levying a service fee on them.
However, these plans have now been paused.
Fee structure
Google's current service fee structure for apps
Google currently imposes a 15-30% service fee on in-app purchases and paid app sales on Play Store, based on the developer's annual revenue.
For developers who opt for the company's third-party billing option, Google charges a commission of 11-26%.
However, this service fee model does not apply to real-money gaming apps as they operate under a different business model.
This discrepancy has added to the complexities faced by Google in developing an appropriate monetization model for such apps.
Pilot program
Google's pilot program for DFS and rummy apps
Google launched a pilot program in September 2022 for distributing digital fantasy sports and rummy apps to users in India, with select apps from Dream11, Games24x7, among others.
The pilot program ended on September 28, 2023, and new apps can no longer join the program.
Google had promised that a new policy would take effect after June 30, 2024.
However, the indefinite extension of the grace period for real money gaming apps has now cast uncertainty over this timeline.