On Friday (1st March), Google removed numerous notable apps developed by ten Indian companies from its Play Store due to “non-compliance with billing policies.” This action reignited tensions between Google and several local internet firms, who have criticized the tech giant’s policies as “unfair.”
Google eliminated various apps from its Play Store, such as Bharat Matrimony, Telugu Matrimony, Tamil Matrimony, Marathi Matrimony, Jodii by Matrimony.com, Shaadi.com by People Group, Truly Madly, QuackQuack, Stage, Altt by Balaji Telefilms. The list of removed apps also encompassed Kuku FM, an audio streaming and podcast app, as well as Info Edge’s primary apps Naukri and 99acres.
Shortly after announcing its intention to enforce its payment policy, Google took action to remove apps from ten developers it deemed “non-compliant.” This move prompted Indian internet entrepreneurs to call for government intervention against the global internet giant’s decision to delist “some of India’s most popular apps without prior notice.
What is Google’s Billing Policy?
Google’s Android controls over 97% of the smartphone market in India. Apps available on Google Play have three choices for accepting payments for digital services and goods: Google’s own billing system, an alternative payment method with slightly lower commissions, and a consumption mode where developers direct users to an external website for payments, bypassing Google’s commission entirely. Shaadi.com was reportedly utilizing the consumption mode, redirecting users to its external website to purchase subscriptions from within the app. Developers express concerns that while they avoid paying Google a portion of the revenue in the consumption model, there is a significant drop-off in user engagement when they are directed to an external website for payment processing.
Google’s decision to remove these apps signals a significant escalation in the strained relationship between the tech giant and certain Indian app developers, who have contested Google’s policy of charging commissions ranging from 11-26 percent on in-app payments. However, recent rulings by the Madras High Court and the Supreme Court earlier this year essentially endorsed Google’s authority to impose these fees or remove non-compliant apps.
Google mentioned that if apps are removed from the platform, developers have the option to reapply by incorporating one of three billing methods: Google Play’s billing system, an alternative billing system in conjunction with Google Play’s, or operating on a consumption-only model without any service fees, provided users have already paid for the content or service externally to the app.
Indian CEO Response to Recent Google Delisting
Shaadi.com
Anupam Mittal, a multimillionaire known for founding and leading People Group and Shaadi.com, took to his social media platform X (formerly Twitter) to address Google’s removal of significant apps from its Play Store.
Today is a dark day for India Internet. Google has delisted major apps from its app store even though legal hearings are underway @CCI_India & @indSupremeCourt Their false narratives & audacity show they have little regard for 🇮🇳 Make no mistake – this is the new Digital East…
— Anupam Mittal (@AnupamMittal) March 1, 2024
Kuku FM
Lal Chand Bisu, Co-founder and CEO of Kuku FM, voiced his worries on his social media platform. He mentioned that Google represents the most formidable obstacle for businesses and they exercise complete dominance over our Indian startup ecosystem.”
Google is the most evil company for businesses. Our Indian startup system is completely controlled by them.
— Lal Chand Bisu (@lcbisu) March 1, 2024
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…
Naukri.com
Sanjeev Bikhchandani, an Indian entrepreneur and the founder and executive vice chairman of Info Edge, the parent company of Naukri.com, stated on X that Indian companies would adhere to the current regulations for the time being. However, he emphasized the necessity for an App Store or Play Store integrated into Digital Public Infrastructure, akin to UPI and ONDC. He stressed that the response should be strategic. Additionally, he tagged @PiyushGoyal and @PiyushGoyalOffc in his post.
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
Conclusion
Most of the apps are back on the playstore today. However, Anupam Mittal, the founder of the People Group, operating the Shaadi.com app, which Google removed, stated that Google reinstated the apps only after they removed all in-app payment methods to comply with Google’s policies.
Vinay Singhal, the co-founder and CEO of the content streaming app Stage, also impacted by Google’s action, informed The Indian Express that they have updated their app and completely removed the billing system. However, they were still awaiting approval to be listed on Google Play, unlike some other apps which were already live.
Following Google’s strict action on Friday, the government had also reached out to the company asking it to reverse course. “I spoke to Google yesterday (Friday) after their action and have asked them not to delist apps like this, and they have started allowing some apps back. On Monday I will have a meeting with Google and the start-ups on this topic,” stated IT Minister Ashwini Vaishnaw.
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