Shortly after Google removed a significant number of Indian applications from its app store due to unpaid fees, a coalition of Indian startups sought intervention from two Union ministers on March 4. They urged the government to compel the tech giant to retract its decision.
In discussions with the ministers, the startups highlighted how Google’s billing practices could potentially devastate their operations, impacting government tax revenues and jeopardizing the livelihood of thousands of employees.
“We had a meeting with Honorable MoS Rajeev Chandrasekhar ji and Honorable Union Minister Ashwini Vaishnaw ji, where we presented our case. They listened attentively as we explained the adverse effects of Google’s actions on our businesses and pointed out the arbitrary and discriminatory nature of Google’s billing policies,” stated Snehil Khanor, founder of TrulyMadly, an online dating application.
“We emphasized the negative consequences for India’s digital landscape and the government’s tax income, as previously profitable businesses face the risk of becoming unprofitable and possibly shutting down, affecting thousands of workers,” he continued.
“We’ve requested the government to instruct Google to revert its decision and return to the status quo before the delisting while the CCI and government assess the situation.”
Present in the meetings with ministers Vaishnaw and Chandrasekhar were Indian internet companies like Bharat Matrimony, HoiChoi, KukuFM, Stage, and the advocacy group Atmanirbhar Digital India Foundation (ADIF).
It was reported that Google also had discussions with Minister Vaishnaw regarding this issue.
Last week, Google announced that it had delisted some apps from 10 Indian companies, which it claimed had avoided paying fees while benefiting from its platform and the PlayStore, without specifying the companies. Searches on the Play Store for apps like Shaadi, Matrimony.com, and Bharat Matrimony, along with others like Altt, Kuku FM, Quack Quack, and Truly Madly, yielded no results.
This conflict arises from Google imposing a fee of 11 to 26 percent for in-app payments, following directives from the anti-competition body CCI to abolish the previous system that charged 15 to 30 percent.
Despite the Supreme Court not granting interim relief to the companies contesting Google’s app marketplace fees, Google proceeded to remove the apps that failed to comply with its fee structure.
While Bharat Matrimony’s founder Murugavel Janakiraman declared this a “dark day” for the internet in India, Kuku FM’s Co-founder Vinod Kumar Meena accused Google of monopolistic behavior. Quack Quack’s Founder Ravi Mittal stated the company’s intention to adhere to the rules to return to the marketplace.
Previously, Google had issued notices to companies like Matrimony.com and Info Edge for PlayStore violations, leading to the removal of their apps, including naukri.com, 99acres.com, and shiksha.com, from the Play Store.
Info Edge founder Sanjeev Bikhchandani suggested that India needs its App Store/Play Store as part of its Digital Public Infrastructure, akin to UPI and ONDC, and called for a strategic response from the government.
IAMAI, representing both large Indian startups and international firms, condemned the app removals and called for Google to reinstate the delisted applications.
Google defended its policy enforcement, stating that no court or regulator has ever denied Google Play’s right to charge for its services, emphasizing the need for consistent policy application across its ecosystem to maintain a fair competitive environment.
