In a sweeping move, Google has removed several popular Indian apps, including Bharat Matrimony, Naukri, Shaadi, 99acres, KukuFm, and Stage, from its Play Store, triggering a wave of frustration and concern among the affected companies and the Indian startup ecosystem.

Founder & CEO Voices Frustration

Murugavel Janakiraman, Founder & CEO of Matrimony.com, took to social media expressing his dismay, stating that what they had painstakingly built over 20 years was eradicated in a single action by Google.

Root Cause: Google Play’s Billing System (GBPS)

The reason behind the removals, according to Google, is the non-compliance of these apps with Play’s billing system (GBPS). GBPS mandates digital service apps to use Google’s billing system and pay a commission, leading to disputes and penalties.

Background on GBPS Implementation

The implementation of GBPS by Google faced opposition previously, with the Competition Commission of India (CCI) imposing a ₹936 crore penalty on the tech giant for its billing practices.

Changes in Google’s Policy

In response to the challenges, Google adjusted its policy, offering companies the choice to pay either 15% or 30% using Google’s billing system or 11% or 26% for utilising third-party payment gateways. An additional option restricts apps from collecting payments within the app.

Violation of the CCI Order

However, Matrimony.com’s founder argues that Google’s updated policy still violates the CCI order, which explicitly states that Google should not impose unfair conditions on app developers using third-party billing.

Legal Challenges & Lack of Intervention

Facing delisting, startups sought relief through legal avenues, including the CCI and the courts. However, they encountered challenges and delays in the process.

Calls for an Independent Indian App Store

Many industry voices are now advocating for the development of an independent app store in India, aiming to reduce dependency on Google and safeguard the interests of domestic app developers.

Google’s Defence & Market Dominance

Google defended its service fees, emphasising its role in supporting the overall app ecosystem. However, developers argue that Google’s dominance in the market poses challenges, and calls for government intervention have intensified.

Impact on Businesses

Delisting these apps has significant implications for the affected businesses, raising concerns about potential revenue loss and survival, especially for apps heavily reliant on the Android platform.

Developers’ Response & Calls for Intervention

Expressing dissatisfaction with Google’s policies, developers are calling for government intervention to ensure compliance with CCI orders. Concerns have been raised about the broader impact on startups and the digital app economy in India.

Overall Market Dynamics

The ongoing dispute has brought to light broader issues in the digital app economy, prompting calls for strategic responses, including the establishment of an independent app store that could provide a more level playing field for Indian developers. The saga continues as the Indian tech industry grapples with the implications of Google’s actions and seeks a path forward.