Last week, several Indian firms faced a setback when Google removed their apps from the Play Store due to non-compliance with billing rules. However, after much reluctance and pressure from both the government and affected developers, some apps have been restored on the store. This includes popular apps like Shaadi, Matrimony.com, Bharat Matrimony, Naukri, 99acres, Kuku FM, Stage, Altt, and QuackQuack.
Google currently offers three options for in-app purchases: a consumption-only model without service fees, its own billing system with a 15% or 30% fee, or alternative billing systems with a reduced fee of around 4%. Many protesting developers have opted for the consumption-only model, while others have decided to comply with Google’s billing system.
We are on the consumption model and back up https://t.co/IuLJxpIDIM – Sanjeev Bikhchandani (@sbikh) March 2, 2024
The affected firms have also sought intervention from the Indian government and the country’s antitrust watchdog. IT Minister Ashwini Vaishnaw has engaged with Google and stated that the delisting of apps “cannot be permitted.” The developers will be meeting with the minister today.
Lal Chand Bisu, co-founder and chief executive of Kuku FM, called out Google for giving preferential treatment to large companies like Spotify. Google has admitted that Spotify pays no fees for in-app purchases on Google Play due to a deal between the two companies.
This is so unfair. Google is using a divide-and-rule strategy here. They are talking to some companies to settle for less Google tax. They have already done a secret deal with Spotify where Spotify is not paying any Google tax. Many big companies still do not comply with Google… – Lal Chand Bisu (@lcbisu) March 2, 2024
Many startups have cited the burden of Google’s fees as an extra cost on their already expensive marketing efforts to drive app downloads. Shaadi.com founder Anupam Mittal stated that Google’s fee structure affects a significant portion of a company’s revenue.
The core issue stems from Apple & Google’s attempts to move the open Internet to a closed app ecosystem where they can lord over the Internet economy. They have already succeeded in muscling large swathes of the Internet and now want 100% dominance. Current issue – Google wants… – Anupam Mittal (@AnupamMittal) March 4, 2024
While alternative app stores are allowed on the Android platform, they have not gained enough traction to compete with Google Play. For instance, Aptoid, a popular alternative store, stated that it drives half a billion downloads globally in a year. In India, PhonePe’s Indus App Store is still in its early stages and may not provide enough distribution for apps.
In a recent interview, Murugavel Janakiraman, CEO of Bharat Matrimony, stated that sideloaded apps are not a feasible option as the company has over 150 apps on the Play Store.
“We can’t offer them via sideloading because most people go to the Play Store to download apps. And what about alternate app stores like the recently launched Indus app store from PhonePe?” Janakiraman told the publication.
Google has maintained that it has given developers multiple options to comply with its rules. The company also noted that less than 60 developers in India are subject to fees higher than 15%. In a blog post, Google stated that giving preferential treatment to a small number of developers creates an uneven playing field for the rest of the ecosystem.
The tech giant also mentioned that developers were given a three-year grace period to comply with Play Store rules and an additional three weeks after the Supreme Court declined the plea from protesting firms to prevent action against them.
The firms protesting against Google’s move are now seeking regulatory intervention. Sanjeev Bikchandani of Info Edge has asked for action by the Competition Commission of India (CCI) against Google. Snehil Khanor, co-founder and CEO of TrulyMadly, along with other founders, stated that Google has not complied with an earlier ruling from the CCI to allow third-party billing systems.
CCI passed an order in October 2022, clearly stating that Google can not restrict all developers for using third party billing systems but google chose to blatantly disobey their direct order. #EvilGoogle – Snehil Khanor (@snehilkhanor) March 1, 2024
The Internet and Mobile Association of India (IAMAI), an industry association representing the largest Indian startups and international firms, stated that it is “deeply concerned” by Google’s delisting of apps. According to Reuters, Indian startups wrote to the CCI on March 1, asking for intervention to restore their apps that have not been reinstated.
