Eight out of the ten startups that faced delisting from the Google Play Store on Friday are now reinstated, with the remaining two also in the process of returning after accepting a compromise proposed by the US tech giant. Among the apps back online are Naukri.com, Jeevansathi.com, Shaadi.com, and Bharat Matrimony.
Union Minister for Communications, Electronics, and IT, Ashwini Vaishnaw, who intervened in the matter on Saturday, has arranged a meeting with both parties scheduled for Monday. Vaishnaw assured, “We will continue to support the startup ecosystem. App developers and Google teams will meet tomorrow (Monday) and explain their viewpoints.”
As per Google’s compromise, the relisted apps on the Play Store will be free of charge, provided transactions do not occur through Google’s billing system. These apps can utilize any third-party payment channel on their respective websites and are exempt from paying a commission (15 to 30 percent, including 4 percent for Google’s billing system). However, those opting to use Google’s payment system will still be subject to commissions.
Startups have expressed dissatisfaction with Google’s abrupt delisting without adequate notice. They are concerned that the high commissions demanded may force them to pass on the burden as a “Google tax” to survive.
Startup and app developers argue that Google is treating Indian developers differently. They highlight that the new formula offered is already implemented or in the process of being implemented in the European Economic Area and the UK. In the EU, as a compliance measure, Google allows app developers to offer only their preferred payment processes and not use the Google payment system. A similar proposal is under discussion in the UK.
Many startups argue that, besides being large advertisers on Google, they are now paying substantial commissions for being on the app store and conducting transactions, which they find unfair. Google took action on delisting after the Supreme Court did not grant interim relief to the petitioners, including startups challenging the tech giant’s billing policy against delisting the apps. Even then, Google waited for a substantial period and started delisting from March 1.
In discussions with app developers, Google has stated that the commission is based on business expectations and is a commercial contract. Developers have a choice not to use its app store, and the startup ecosystem is not impacted as the majority of app developers do not pay, Google argued. In a statement to the Standing Committee of Finance, Google stated that only 3 percent of app developers are subject to the service fee, while the remaining 97 percent can distribute their apps on Play Store and use all the developer tools and services at no cost. Apple Inc. reported a similar situation, stating that 87 percent of developers do not pay any commission to Apple.
