Billing policy dispute: Google delists homegrown apps from Play Store – Technology News

Google on Friday started removing some of the popular homegrown apps from its Play Store, over a dispute on service fee payments, prompting some of the apps to term it as a “Digital East India Company”. The list so far includes matrimony platforms such as Shaadi, Matrimony.com, Bharat Matrimony; Balaji Telefilms’ Altt (formerly ALTBalaji), audio platform Kuku FM, dating service Quack Quack, Truly Madly, Naukri, and 99acres, among others.

The removal from Play Store is expected to affect the business of these companies as new users would find it difficult to download them. Startups, in particular, would be badly hit. Users who have already downloaded the apps concerned would, however, not face any difficulty accessing them.

The delisted apps can be downloaded from the web or third-party app stores.

Google said that 10 companies in the country, including many well-established ones, had avoided paying fees despite benefiting from the platform. It did not name the firms but many companies, including InfoEdge’s Jeevansathi, Shaadi.com and TrulyMadly, said they have received the notice of non-compliance from Google.

The dispute relates to non-payment of a commission fee of 11-26% by the apps regarding transactions their users do within the app, 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 the Supreme Court on the ground that the levy is too high, but have not got a stay order. The SC is currently hearing a plea by the 10 companies who have challenged this billing policy of Google.

“After giving these developers more than three years to prepare, including three weeks after the Supreme Court’s order, we are taking necessary steps to ensure our policies are applied consistently across the ecosystem, as we do for any form of policy violation globally,” Google said in a blog post.

“Enforcement of our policy, when necessary, can include removal of non-compliant apps from Google Play,” it said, adding that the developers can resubmit their apps to be listed on Play Store by electing any one of three billing options as part of its payments policy.

Anupam Mittal, founder of People Group and Shaadi.com, said, “Many startups pay anywhere between 20-50% as Google tax to get distribution and protect their own brand from bidders. It’s the Digital East India company”.

According to Mittal, almost 20-30% of the company’s revenue goes to Google app so that the apps can be visible on Google.

Murugavel Janakiraman, CEO of BharatMatrimony, said: “Our apps are getting deleted one by one in Google policy action. We need to free India from the clutches of such monopoly by Google.” He added, “Google’s policy action is a dark day of Indian Internet.”

“Indian companies will comply — for now. But what India needs is an App Store/Play Store that is a part of Digital Public Infrastructure — like UPI and ONDC. The response needs to be strategic,” said Sanjeev Bikchandani, founder of InfoEdge.

“Our app’s delisting by Google over the user choice billing issue marks a regressive step for digital entrepreneurship. This action not only stifles our ability to serve our users effectively but also sets a concerning precedent for app developers in India, challenging the very principles of a free and fair digital marketplace,” said Ravi Mittal, founder & CEO of QuackQuack.

Industry body Internet and Mobile Association of India (IAMAI), which is now led by homegrown startups, urged Google not to delist the apps. It said, at least four of its members have received notices from Google.

“The affected members of IAMAI 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.

According to Google, only 3% of developers in India sell digital goods or services and therefore need to pay a service fee. The vast majority of whom pay 15% or less — the lowest of any major global app store. In fact, in India, less than 60 developers on Google Play are subject to fees above 15%, it said.

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