Google vs Startups: Telcos body accuses tech giants of bias against Indian firms

Indian startups facing delisting threats by Google Play Store have found support from Indian telecom companies. The industry body, Cellular Operators Association of India (COAI), has issued a statement stating, “Global behemoths seem fully prepared to oust the homegrown Indian companies based on pure financial motives."

Without directly referring to Google, the COAI statement said that no regard was shown to the vital ecosystem of Indian startups, which brings innovation and entrepreneurship to the fore. Importantly, the COAI statement also alleged that such behaviour by “large behemoths” would be against the spirit of the Indian govt’s flagship “Make in India” initiative.

The COAI took the opportunity to flag its long-standing demand for larger internet players like Google to pay telcos compensation. Telcos have been claiming that the traffic generated by such large players, or “Large Traffic Generators” (LTGs), puts a significant burden on telecom networks, requiring vast infrastructural spending. Telcos have cited this as grounds for seeking “fair share” compensation from LTGs.

The COAI statement said that the same LTGs vehemently opposed the proposal for a fair-share contribution for the additional infra costs that Telcos bear. The statement clarified that Telcos are seeking this compensation only from 4-5 LTGs, and not the Indian startup ecosystem.

The statement from COAI comes even as Google restored most apps originally delisted on March 1. Google, in a blog post, had cited non-compliance with its payment policy as grounds for delisting the apps. The delisting had invited comments from the Union Minister for Electronics and Information Technology (MeitY), and Telecom, Ashwini Vaishnaw. Google and startups have met Vaishnaw and Minister of State, MeitY, Meity Rajeev Chandrasekhar. Both ministers have expressed concern about the delisting of Indian Startups.

A Google spokesperson said, "In the spirit of cooperation, we are temporarily reinstating the apps of the developers with appeals pending in the Supreme Court. Google maintains its right to implement and enforce its business model, as established in various courts. We will invoice our full applicable services fees in the interim and are extending payment timelines for these companies. We look forward to a collaborative effort to find solutions that respect the needs of all parties."