hometechnology NewsGoogle Indian startups row: Telecom Minister and IAMAI challenge tech giant's app delisting decision

Google-Indian startups row: Telecom Minister and IAMAI challenge tech giant's app delisting decision

IT and Telecom Minister Ashwini Vaishnaw said the startup ecosystem is key to the Indian economy and their fate cannot be left to any big tech to decide.

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By CNBCTV18.com Mar 2, 2024 2:31:54 PM IST (Published)

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Google-Indian startups row: Telecom Minister and IAMAI challenge tech giant's app delisting decision
The Internet and Mobile Association of India (IAMAI) has expressed deep concern over the delisting of a majority of apps by Google Play, which are yet to be relisted. The association considers such measures as unfair and disproportionate at a time when a legal process is ongoing. They view these measures as discriminatory to the practice followed by Google in other jurisdictions, where it has offered preferential terms to app developers in deference to ongoing legal proceedings or legislative developments.

The Association appreciates the proactive response of the government to the issue and the government’s commitment to help resolve the issue. They urge Google to restore the status quo of the apps and re-list them on the Play Store in the manner they have been operating since inception. They also urge Google to discuss the matter with the stakeholders and work towards a reasonable and mutually beneficial solution.
This update comes in the wake of the government’s strong stance against Google’s action of pulling off some apps from its Play Store. IT and Telecom Minister Ashwini Vaishnaw has stated that the delisting of Indian apps cannot be permitted and that the tech company and the startups concerned have been called for a meeting next week. The minister’s comments assume significance as Google began removing some apps, including popular matrimony apps, from its Play Store in India over a dispute on service fee payments.
Vaishnaw asserted that India’s policy is clear and that the startups will get the protection they need. He stated that the government will be meeting Google and the delisted app developers next week to resolve the dispute. He emphasized that India has built a strong startup ecosystem of over one lakh startups, and more than 100 unicorns from scratch in a matter of 10 years, and that the energy of youth and entrepreneurs must be channelled fully and not be left to the policies of any big tech.
On Friday, Google said 10 companies in the country, including "many well-established" ones had avoided paying fees despite benefiting from the platform and Play Store, and proceeded to delist some apps. It did not name the firms but a search of Play Store on android phones did not give results for matrimonial apps such as Shaadi, Matrimony.com and Bharat Matrimony. Balaji Telefilms' Altt (formerly ALTBalaji), audio platform Kuku FM, dating service Quack Quack, Truly Madly also disappeared from the Play Store.
The raging dispute is over Google imposing a fee of 11 to 26 per cent on in-app payments after anti-competition body CCI ordered scrapping of an earlier system of charging 15 to 30 per cent. Google went ahead to remove the apps not paying the fee after the Supreme Court did not provide interim relief to companies behind these apps in their battle against the search giant's app marketplace fee.
While Bharat Matrimony founder Murugavel Janakiraman described the move as "dark day" for the Internet in India, Kuku FM Co-founder Vinod Kumar Meena in a statement had said that Google was behaving like a 'monopoly'. Quack Quack Founder Ravi Mittal said the company would comply with rules to get back on the marketplace. Google previously sent notices of Play Store violations to Matrimony.com, which runs app BharatMatrimony, and Info Edge, which runs a similar app, Jeevansathi.
Info Edge (India) Ltd on Saturday said its mobile apps, including naukri.com, 99 acres.com, and shiksha.com have been removed from Google Play Store. "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," Info Edge founder Sanjeev Bikhchandani had said in a post on Friday on X (formerly Twitter) tagging Commerce and Industry Minister Piyush Goyal and his office.
IAMAI - an industry association that represents some of the largest Indian startups as well as international firms - condemned the removal of apps and had urged Google to reinstate delisted apps. In its blogpost, Google had said 10 Indian companies had chosen for an extended period of time not to pay for the "immense value they receive on Google Play".
"For years, no court or regulator has denied Google Play's right to charge," it said, adding that the Supreme Court on February 9 also "refused to interfere" with its right to do so. Google asserted that allowing a 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 putting all other apps and games at a competitive disadvantage.
"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 the blogpost, Google had said that enforcement of the policy, when necessary, can include removal of non-compliant apps from Google Play. Google, however, added that existing users will be able to continue to access the apps without interruption and that it continues "to offer our support to help developers get into compliance".
Developers, it said, are welcome to resubmit their apps to be listed on Play by selecting one of the three billing options as part of its payment policy. "Today, we have over 2,00,000 Indian developers using Google Play who adhere to our policies, helping us ensure we have a safe platform; however, for an extended period of time, 10 companies, including many well-established ones, have chosen to not pay for the immense value they receive on Google Play by securing interim protections from the court," Google had said.
(With inputs from PTI)

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