Google has faced criticism and legal action from some of the most popular Indian app developers over its policy of charging a commission of up to 26% on in-app payments made through its Play Store. The tech giant has removed several apps, including Naukri, Shaadi, Bharat Matrimony, Kuku FM, Altt, and TrulyMadly, from its app marketplace for violating its billing policy.
The dispute started in September 2021, when Google announced that it would enforce its global policy of taking a 26% cut from in-app purchases of digital goods and services on the Play Store in India from March 2022. The policy applies to apps that offer subscriptions, gaming features, dating services, e-books, music, and video content.
Many Indian app developers protested against this move, arguing that it was unfair, arbitrary, and anti-competitive. They claimed that Google was abusing its dominant position in the Indian market, where over 90% of smartphones run on its Android operating system. They also said that the policy would hurt their revenues and innovation, and that they should have the freedom to choose their own payment methods.
Some of the developers challenged Google's policy in the courts, seeking interim relief from paying the commission. The Madras High Court and the Supreme Court, however, ruled in favor of Google, stating that the developers had agreed to the terms and conditions of the Play Store when they signed up. The courts also said that the developers could opt out of the Play Store and distribute their apps through other channels.
Google, on its part, defended its policy, saying that it was consistent with the industry standards and that it provided value to the developers by offering a secure and reliable platform for distributing and monetizing their apps. Google also said that it had given the developers enough time to comply with the policy and that it had engaged with them through multiple consultations and feedback sessions.
On Friday, March 2, 2024, Google started removing some of the apps that had not complied with its billing policy from the Play Store. This sparked a fresh wave of outrage and resentment among the developers and the users of the affected apps. Some of the developers accused Google of being "evil" and "bullying" them, while some of the users expressed their frustration and disappointment on social media.
The issue also caught the attention of the Indian government, which intervened in the matter and called for a meeting with Google and the app developers next week. The IT and Telecom Minister Ashwini Vaishnaw said that the delisting of Indian apps could not be permitted and that the startups would get the protection that they needed. He said that the government was clear about its policy and that the fate of the startups could not be left to any big tech to decide.
The meeting is expected to resolve the dispute and find a mutually acceptable solution for both Google and the app developers. The outcome of the meeting could have implications for the future of the Indian app ecosystem, which is one of the fastest-growing and most vibrant in the world.
Source: Conversation with Bing, 3/4/2024
(1) Google removes popular Indian apps including Naukri, Shaadi in tiff .... https://indianexpress.com/article/business/google-indian-matrimonial-job-search-apps-fees-row-9191031/.
(2) Google restores Naukri, 99acres, other apps after Centre's intervention .... https://www.business-standard.com/technology/apps/google-restores-naukri-99acres-other-apps-after-centre-s-intervention-124030200563_1.html.
(3) Google Removes Popular Indian Apps From Store Over Fee Dispute. https://www.phoneworld.com.pk/google-removes-popular-indian-apps-from-store-over-fee-dispute/.
(4) Naukri, 99acres, BharatMatrimony among apps delisted from Google Play Store. https://economictimes.indiatimes.com/tech/technology/naukri-99acres-shaadi-com-bharatmatrimony-among-apps-delisted-from-google-play-store/articleshow/108144996.cms.
