Google removed the apps of 10 Indian developers from its Play Store due to non-compliance with its payments policy. By Monday morning, nine of these developers had some of their apps reinstated after they complied with Google’s policies. These apps included Kuku FM, Bharat Matrimony, Shaadi.com, Naukri.com, 99 acres, Truly Madly, Quack Quack, Stage, ALTT (Alt Balaji), etc. The reinstatement likely happened after the government intervened, with IT minister Ashwini Vaishnaw saying that he spoke to Google about reconsidering its decision.
“Energy of our talented people should be channelised fully well, it cannot be left to the policies of any big tech,” Vaishnaw was quoted as saying by a media portal.
It is said certain app developers had been cautioned by the company last year regarding potential non-compliance with Google’s billing policies. Subsequently, these developers received notifications, prompting Google to take action by removing 10 of the contested apps from the Google Play Store.
Although the re-listing of certain apps may offer temporary respite, it underscores how Google’s decisions shape the destiny of numerous developers. While these actions may fall within legal parameters, they provoke significant inquiries regarding the unrestrained authority of tech behemoths and the necessity for alternative platforms.
In a LinkedIn blog post on Friday, Google clarified that among the developers utilising Google Play, only ten Indian developers opted not to adhere to payment for services, whereas over 200,000 others complied with the billing policies.
It stated that providing distinct treatment to only ten developers fosters an unjust environment and puts other apps and games at a disadvantage.
What’s the Conflict?
The conflict centres on Indian startups’ resistance against Google’s implementation of fees ranging from 11 percent to 26 percent on in-app payments, following an order from antitrust authorities to dismantle the previous fee structure of 15 percent to 30 percent. Google asserts that its fees support the development and promotion of the Android and Play Store app ecosystem. Despite two court decisions in January and February seemingly permitting Google to proceed with the new fee or remove apps, Indian companies continue to challenge this imposition.
Murugavel Janakiraman, founder of Matrimony.com, referred to it as a bleak day for India’s internet, highlighting the potential widespread impact on matrimonial services.
The impact is significant as matrimonial apps and websites have gained popularity in India, especially among younger generations opting for non-traditional matchmaking. Bharat Matrimony alone boasted over 50 million downloads and a customer base exceeding 40 million.
According to developers, the consumption-only model entails not offering in-app payments to users and instead directing them to the website for payments. This approach introduces friction in the user interface and diminishes the likelihood of users making payments.
What did the courts say?
Google’s action followed the Supreme Court’s refusal to issue an interim order protecting internet firms like Matrimony.com and Shaadi.com from being removed from Google’s Play Store on February 9, 2024. The Supreme Court listed the case for a hearing on March 19.
The app developers had approached the Supreme Court against the Madras High Court’s order, which dismissed their plea challenging Google’s enforcement of its app billing policy.
Indian app developers had written to Google, urging the tech giant to “exercise restraint” and refrain from taking any “precipitate action” to delist apps from the Google Play Store until March 19. But Google went ahead with its actions on the 1st of March itself.
What’s next?
Discussions regarding app developers and users in India are calling for more diverse choices in app stores urgently. The dominance of major players like Google underscores the critical need for varied options. Industry stakeholders rightly advocate for the establishment of an app store integrated into India’s Digital Public Infrastructure, similar to UPI and ONDC. Such a platform would not only promote competition but also protect against the abuse of monopoly power, ensuring a fairer and more inclusive digital marketplace for everyone.
However, recent initiatives such as the launch of the Indus Appstore by Walmart-owned PhonePe on February 21, indicate efforts to encourage competition and nurture a localised mobile app store economy in India. Notably, the Indus Appstore enables developers to utilise third-party billing systems for in-app transactions, thereby bypassing Google Play’s policy mandating the use of its billing system and associated commissions.
Instead of succumbing to helplessness, India must seize the opportunity to reduce dependence on global tech giants by cultivating its alternatives. Only by actively developing and embracing homegrown solutions can India pave its way towards digital self-reliance and assert its sovereignty in the global digital arena.
With one-sixth of humanity and a growing young population, India has the potential to exert significant influence in the digital realm. In a 21st-century world where digital and data dominate, India must assert its digital sovereignty to achieve greater autonomy and control over crucial digital assets. This endeavour also involves creating an environment that nurtures local talent and promotes indigenous innovation.
