App delisting can’t be allowed: Govt – Technology News

A day after Google delisted some apps over non-compliance of its billing policy, the government has said such actions cannot be permitted, and it has summoned the tech giant and the app companies to seek clarity on the matter and resolve the dispute.

“The delisting by Google cannot be permitted. We have called Google and app developers next week for a meeting,” communications and IT minister Ashwini Vaishnaw told FE, adding,“We are clear in our policy that our startups will get the protection that they need.” 

The meeting is expected to happen on Monday.

While Google has started reinstating some of the apps on compliance, sources in the know said it was expedited after Vaishnaw intervened in the matter. However, most of the apps that have been reinstated are returning as consumption-only apps and not with in-app billing. 

At the time of going to press, Google had reinstated Naukri, 99Acres and Shiksha, all by InfoEdge, besides Shaadi.com.

Anupam Mittal, founder of Shaadi.com, told FE that “these apps are back as consumption apps and do not involve any in-app billing”, adding, “Those who have complied under billing are in small numbers and they have done so under duress. They don’t have any option.”

This means the delisted apps have not accepted Google’s in-app billing having a commission of 11-26%, but have scrapped that option by choosing the consumption-only category, which might affect their business going forward.

Consumption-only apps means users cannot purchase any products or services — digital or physical — from within the app. They will have to do it outside the app, maybe on the company’s website, which affects both the user experience  and business of the apps, said industry executives.

Google has given app developers three options for billing: operate on a consumption-only basis without paying a service fee; use Google Play’s billing system, or use an alternative billing system.

“The energy of our entrepreneurs, energy of our talented people cannot be left to the big tech companies. It has to be channelised fully well,” Vaishnaw told FE.

Minister of state for electronics and IT Rajeev Chandrasekhar also told FE, “It has been a concern that the dominance of the Google Play Store does impact the government’s goals of keeping the internet open and making sure consumer choice is not distorted, and there is no market power abuse.”

According to Chandrasekhar, 93-94% of all apps are on Google Play Store in India, and that Play Store is controlled by one company, and that the company certainly has vertically integrated dominance is an area of concern for anybody.

Google on Friday started removing some popular homegrown apps from its Play Store over a dispute on service fee payments. The list included matrimony platforms Shaadi, Matrimony.com, Bharat Matrimony, Balaji Telefilms’ Altt (formerly ALTBalaji), audio platform Kuku FM, dating service Quack Quack, Truly Madly, Naukri and 99acres.

Industry body Internet and Mobile Association of India (IAMAI) has condemned the removal of some of the apps and urged Google to reinstate them.

Google in a blog said 10 companies in the country, including many well-established ones, had avoided paying fees despite benefiting from the platform. The dispute relates to non-payment of commission fee of 11-26% by the apps regarding transactions their users do within the app, which is also called in-app purchases. This came after the Competition Commission (CCI) ordered Google not to restrict developers from using third-party billing and processing services.  Several homegrown startups have challenged the Play Store billing policy in the Madras High Court and Supreme Court on the ground that the levy is too high, but have not got a stay order. The Supreme Court is currently hearing a plea by the 10 companies who have challenged this billing policy.