Google Sparks Showdown with Indian App Makers as Delisting of Apps Triggers Outcry
- ByStartupStory | March 2, 2024
Google has initiated the delisting of apps from 10 prominent Indian companies, including popular matrimony apps such as Bharat Matrimony. This move is the latest development in an ongoing dispute over service fee payments, marking a potential showdown between the tech giant and startup firms in the country.
The conflict revolves around attempts by Indian startups to resist Google’s imposition of a fee ranging from 11% to 26% on in-app payments. This comes after antitrust authorities in India ordered Google to dismantle its previous system, which charged fees between 15% and 30%. Despite two court decisions in January and February, including one from the Supreme Court, denying relief to startups, the dispute continues to escalate.
Matrimony.com, the company behind apps like Bharat Matrimony, Christian Matrimony, Muslim Matrimony, and Jodii, expressed dismay at the abrupt delisting. Founder Murugavel Janakiraman referred to it as a “dark day of Indian Internet,” lamenting, “Our apps are getting deleted one by one.”
Anupam Mittal, founder and CEO of People Group, condemned Google’s actions as a blatant violation of the Competition Commission of India (CCI) order. Mittal emphasized the lack of forewarning, stating, “Google delisted some of the most well-known apps in India without any fore-warning.”
Reacting to the notices of Play Store violations, executives from Matrimony.com and Info Edge (which operates the Jeevansathi app) stated they are reviewing the notices and considering their next steps. Shares of Matrimony.com fell by up to 2.7%, and Info Edge dropped 1.5% following the Reuters report.
Sanjeev Bikhchandani, founder of Info Edge, clarified that the company had cleared all pending Google invoices promptly and was compliant with the tech giant’s policies.
In response, Google defended its actions in a blog post, stating that the delisted companies had chosen not to pay for the “immense value they receive on Google Play” for an extended period. The post emphasized that no court or regulator had denied Google Play’s right to charge fees. Google’s removal of apps raises concerns among the Indian startup community, which has been critical of the company’s practices.
Google, holding a dominant 94% share of Android-based phones in the Indian market, asserts that its fee supports investments in the app store, the Android operating system, and ensures free distribution while covering developer tools and analytic services. The tech giant claims that only 3% of the 200,000 Indian developers on the Google Play platform are required to pay any service fee.
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