Google App Store Monopoly: Did we miss building MSeva?

Conversations surrounding app developers and users in India urgently demand more choices in terms of app stores.

Google's recent ousting of a few Indian apps from its App Store underscores the formidable grip it holds over the global app ecosystem. While the reinstatement of some apps may provide temporary relief, it is evident that Google's actions dictate the fate of countless developers. While these actions may be within legal bounds, they raise serious questions about the unchecked power of tech giants and the need for alternative platforms.

Conversations surrounding app developers and users in India urgently demand more choices in terms of app stores. The monopolistic grip exerted by major players like Google highlights the pressing need for diversified options. Industry stakeholders rightfully advocate for the development of an app store integrated into India's Digital Public Infrastructure, akin to UPI and ONDC. Such a platform would not only foster competition but also safeguard against the misuse of monopoly power, ensuring a more equitable and inclusive digital marketplace for all.

Nevertheless, recent initiatives, such as the launch of the Indus Appstore by Walmart-owned PhonePe on February 21, demonstrate efforts to foster competition and cultivate a localised mobile app store economy in India. Notably, the Indus Appstore allows developers to utilise third-party billing systems for in-app transactions, thus circumventing Google Play's policy mandating the use of its billing system and associated commissions.

An Aatmanirbhar App Store Languishes

While Google’s actions as a monopolistic rent seeker may evoke outrage and frustration, it serves as a stark reminder of India’s dependency on external platforms. However, instead of resigning to a state of helplessness, India must seize the opportunity to break free from reliance on global tech giants by nurturing its own alternatives. Building robust indigenous options, including app stores, is essential to mitigate the risks posed by monopolistic practices and safeguard the interests of Indian developers and users alike. Only by proactively developing and embracing homegrown solutions, India can chart its path towards digital self-reliance and assert its sovereignty in the global digital arena.

Despite its inception as India's indigenous application store, MSeva remains vastly under-utilised by the Indian startup community. It was developed way back in 2011 by the Centre for Development of Advanced Computing (C-DAC) and the Department of Electronics and Information Technology (DeitY). Initially hosting only government apps, its recent expansion to include private apps in March 2021 marked a significant stride towards bolstering India's digital ecosystem.

The rationale behind this expansion was clear: To mitigate the overwhelming monopoly of Google Android and foster a more diverse and inclusive digital marketplace. However, despite its potential and the government's efforts to promote it, MSeva has yet to witness widespread adoption by Indian businesses. This begs the question: why has India's 'aatmanirbhar' app store failed to catch on?

MSeva Needs Better Marketing, Engaging UI

Firstly, the absence of partnerships with phonemakers has limited the pre-installation of MSeva on devices, hindering its accessibility to users. Additionally, inadequate promotion and poorly designed user interfaces have contributed to its underutilisation. Private companies, particularly those in the e-commerce sector, will be hesitant to invest in a platform without a sizeable user base. The dominance of global app stores like Google Play Store and Apple App Store, which offer access to massive audiences, further disincentivises developers from migrating to alternative platforms.

Moreover, while Android's ecosystem appears more open on the surface, attempts to install apps from alternate sources would be met with warnings about potential security risks, deterring non-tech-savvy users. To truly unlock the potential of MSeva, concerted efforts are needed to address these barriers to adoption.

If the government is serious about promoting MSeva's adoption, proactive engagement with smartphone brands under the Make in India initiative is essential. Encouraging partnerships and incentivising pre-installation of the app store on devices could significantly enhance its reach. Additionally, investing in robust promotion strategies and user interface enhancements would improve the user experience and attract more developers and businesses to the platform.

However, achieving widespread adoption of MSeva may require more than just voluntary participation. Regulatory mandates or incentives could incentivise private startups to migrate to the government platform. Nevertheless, such mandates must strike a balance between promoting indigenous innovation and respecting the freedom of choice for businesses and consumers. But then one also wonders if the Indian startups are actually serious about indigenous platforms like MSeva, while wanting the user base of google app stores.

Hopefully we have learnt our lessons and will showcase urgency. India’s imperative to construct an entire value chain of digital pipelines, encompassing its own app stores, stems from the need to assert digital sovereignty and digital-self-sufficiency. As a nation boasting one-sixth of humanity and a burgeoning young demographic, India possesses the potential to wield considerable influence in the digital space. In the 21st century world dominated by digital and data, India needs to have its digital sovereignty, to ensure greater autonomy and control over critical digital assets but also fosters a conducive environment nurturing homegrown talent and fostering indigenous innovation.

Srinath Sridharan is an Author, Policy Researcher and Corporate Advisor, Twitter: @ssmumbai. Views are personal, and do not represent the stand of this publication.