Google Delists Popular Indian Apps From it Play Store Over Fee Dispute Sparking Industry Outcry

Highlights

• Google removes major Indian apps including matrimonial and entertainment services over fee disputes.
• Fee imposition ranges from 11 to 26 percent on in-app payments after CCI intervention.
• Bharat Matrimony founder and other industry leaders criticize Google’s actions as detrimental.
• Google insists on consistent policy enforcement to maintain a level playing field among developers.

Google’s recent move to delist several popular applications from its Play Store in India has sparked a significant debate in the tech community.

This action affects a range of apps, from matrimonial services like Shaadi, Matrimony.com, and Bharat Matrimony to entertainment and dating services such as ALTT and Quack Quack.

The cause of this dispute lies in the disagreement over service fee payments, with Google asserting that these companies have avoided paying fees despite benefiting from the platform’s vast user base and services.

Google’s Stance on Fee Enforcement

Indian companies will comply – for now. But what India needs is an App Store / Play Store that is a part of Digital Public Infrastructure – like UPI and ONDC. The response needs to be strategic @PiyushGoyal @PiyushGoyalOffc

— Sanjeev Bikhchandani (@sbikh) March 1, 2024

Google’s decision follows a prolonged disagreement over its imposition of a fee ranging between 11 to 26 percent on in-app payments, a change prompted by orders from India’s anti-competition body, the Competition Commission of India (CCI), to abolish the previous system that charged between 15 to 30 percent.

Despite the Supreme Court’s refusal to provide interim relief to the app developers in their legal battle against Google’s fees, the tech giant proceeded to remove the apps for non-compliance.

Google defends its policy enforcement, emphasizing the need for a consistent application across its ecosystem to maintain a level playing field for all developers.

Industry Reaction and the Call for a Strategic Response

Google is the most evil company for businesses. Our Indian startup system is completely controlled by them.

Google delisted us in 2019 for 25 days without pre-notifying us. Worst days ever. Just imagine the atmosphere where the team is working daily in the office and there is no…

— Lal Chand Bisu (@lcbisu) March 1, 2024

The reaction from the affected companies and industry figures has been one of concern and frustration. Bharat Matrimony founder Murugavel Janakiraman dubbed the day of removal as a “dark day” for the internet in India.

“Google is the most evil company for businesses. Our Indian startup system is completely controlled by them. Google delisted us in 2019 for 25 days without pre-notifying us. Worst days ever. Just imagine the atmosphere where the team is working daily in the office and there is no app on Play Store. Now they have delisted us again. We are now faced with no option but to accept their terms. This will completely destroy our business and make Kuku FM unfordable for the majority of the country, but when have a monopoly cared about anything beyond itself.” said Lal Chand Bisu founder of Kuku FM.

The sentiment is echoed by Info Edge founder Sanjeev Bikhchandani, who said “Indian companies will comply – for now. But what India needs is an App Store / Play Store that is a part of Digital Public Infrastructure – like UPI and ONDC.”

Google is the most evil company for businesses. Our Indian startup system is completely controlled by them.

Google delisted us in 2019 for 25 days without pre-notifying us. Worst days ever. Just imagine the atmosphere where the team is working daily in the office and there is no…

— Lal Chand Bisu (@lcbisu) March 1, 2024

Moreover, the Internet and Mobile Association of India (IAMAI), representing both Indian startups and international firms, has advised Google against delisting apps, stressing the importance of a fair hearing in the Supreme Court.

Google, however, remains firm in its stance, arguing that allowing a select group of developers to bypass the payment policy would disadvantage the vast majority who comply, thus undermining the platform’s integrity.

As the dispute unfolds, the Indian startup ecosystem is surely watching closely, anticipating the potential implications for digital marketplaces and the broader ecosystem of app development in India.

FAQs

Why did Google delist several popular Indian apps from the Play Store?

Google delisted apps due to a dispute over service fee payments, with the company claiming that these apps avoided paying fees despite benefiting from the platform.

What kind of apps were affected by Google’s recent delisting?

Apps spanning various categories, including matrimonial services like Shaadi and Bharat Matrimony, as well as entertainment and dating services such as ALTT and Quack Quack, were removed.

How has the Indian tech industry reacted to Google’s app delisting?

The reaction has been largely critical, with figures like Bharat Matrimony’s Murugavel Janakiraman and Kuku FM’s Lal Chand Bisu expressing concern over Google’s monopoly and its impact on Indian startups.

What is Google’s justification for delisting apps over fee disputes?

Google asserts that enforcing its fee policy consistently across all developers ensures a fair and competitive environment, stating that differential treatment could put other apps at a disadvantage.

Is there any move towards an alternative to Google’s Play Store in India?

Yes, industry leaders like Sanjeev Bikhchandani have suggested the need for an alternative digital infrastructure, akin to UPI and ONDC, to reduce dependency on platforms like Google Play.

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