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Google takes down Indian apps from Play store over service fee row

Digital startups say firm imposing exploitative policies on developers

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Ashutosh Mishra New Delhi
Early on Friday, technology major Google said it might remove apps of 10 Indian developers from its Play Store for not complying with its user choice billing (UCB) system. But even before the day came to a close, some apps of job search and matrimony companies, such as Naukri.com, matrimony.com, and Truly Madly, were found missing from Google Play.

The dispute is over Google imposing a fee of 11 per cent to 26 per cent on in-app payments after the Competition Commission of India ordered scrapping of an earlier system of charging 15 per cent to 30 per cent.
 
 
Earlier this month, the Supreme Court agreed to hear pleas by a group of Indian startups challenging the UCB policy but refused to pass an interim order, allowing Google to delist apps that were not in agreement with its billing policy. 
 
Google did not name the firms but a search on Google Play using Android phones did not give results for apps like Shaadi, Bharat Matrimony, Balaji Telefilms’ Altt (formerly ALTBalaji), audio platform Kuku FM, and dating service Quack Quack.
“We were given a notice today, and our app was delisted from Google Play within one hour,” said Snehil Khanor, chief executive officer (CEO), Truly Madly.
 
Two apps from the Sanjeev Bikhchandani-led Info Edge group — Naukri.com and 99 Acres — were also taken down.

 In a post on X, Bikhchandani said: “Indian companies will comply (with the UCB norms) for now. But what India needs is an app store or play store that is part of Digital Public Infrastructure — like Unified Payments Interface and Open Network for Digital Commerce. The response needs to be strategic.”

Anupam Mittal, founder & CEO of People Group (Shaadi.com), said Google delisted “some of the most well-known apps in India without any warning, in a blatant violation of the CCI order.”

“Amazing how quickly they went from ‘Don’t be evil’ to hallucinating like the GenAI Gemini that they have built. This is indeed a dark day for India’s economy and its future,” Mittal said, demanding that the government intervene and direct the CCI to ensure Google was in compliance with its order and restore all apps.

The Alliance of Digital India Foundation (ADIF) said it was disappointed by “the unilateral and arbitrary actions of Google, which had shown complete disregard for the ongoing legal proceedings and the interests of the Indian app ecosystem”.

“By delisting apps and issuing blog posts, Google is trying to intimidate and coerce the developers who have dared to challenge its exploitative policies,” the ADIF statement further read.

The latest move follows the technology giant's warning that it would act against Indian developers who did not follow its billing policy.

“Enforcement of our policy, when necessary, can include removal of non-compliant apps from Google Play,” said Google. There are more than 200,000 Indian developers on Google Play. “For an extended period, 10 companies, including many well-established ones, have chosen not to pay for the immense value they receive on Google Play by securing interim protections from court, and these developers comply with payment policies of other app stores," the tech major said in a blog post.

Google said the developers had more than three years to prepare for its UCB policy, including three weeks after a recent Supreme Court order. “Allowing this small group of developers to get differential treatment from the vast majority of developers who are paying their fair share creates an uneven playing field across the ecosystem and puts all other apps and games at a competitive disadvantage,” said the company.

The Internet and Mobile Association of India (IAMAI), an industry group for technology and telecom companies, urged Google not to take action against these developers. “The IAMAI is able to confirm that at least four of its members have received notices from Google. The affected members are of the view that a substantive hearing of the case is pending before the Supreme Court of India, and Google should not take any coercive action during the pendency of the case,” it said in a statement.
 
Apps that are removed can join Google Play again by electing any one of the multiple billing options as part of the tech giant’s payments policy, including consumption-only basis without paying a service fee or implementing an alternative billing system, according to the company.


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First Published: Mar 01 2024 | 4:06 PM IST

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