It's deja vu for Indian internet companies as they find themselves on a collision course with Google over its Play Store billing policy.
On March 1, Google delisted over a hundred apps by prominent Indian digital companies including Matrimony, Info Edge (which runs Naukri, 99acres, and Jeevansathi), Shaadi.com, and Kuku FM from Play Store for not complying with the company's app billing policy for an extended period of time.
A day later, Google reinstated a few apps such as online classifieds firm Info Edge and matrimony firm Shaadi.com.
The development is the latest escalation in the ongoing standoff between the tech giant and local internet companies in the world's second-largest internet market. Android currently powers 96-97 percent of smartphones in India, as per industry estimates.
In recent years, Google has faced intense backlash from Indian developers over its app policies, particularly after the search giant's announcement in October 2020 that it will begin enforcing a mandatory integration of its Play billing system across the world.
Several app developers have mentioned the commission fee levied by the tech giant as "extremely high" and "unfair".
Here's what happened so far and what is next
What action did Google take?
Google took down over 150 apps by Indian app developers from Play Store, hours after the Android maker stated that it would take action against 10 developers that had chosen not to comply with its payment policy, despite adhering to the payment policies of other app stores.
These companies were petitioners in a case against Google's app billing policy in the Supreme Court.
Why now?
Google's action came after the Supreme Court refused to pass an interim order protecting internet firms such as Matrimony.com, Shaadi.com from being delisted from Google's Play Store on February 9, 2024, and listed the case for hearing on March 19.
The app developers had approached the Supreme Court against Madras High Court's order that had dismissed its plea challenging Google's enforcement of its app billing policy.
In February, Moneycontrol reported that a group of over 30 Indian app developers wrote to Google, requesting the tech giant to "exercise restraint" and not take any "precipitation action" to delist apps from Google Play Store until March 19.
Which apps are impacted so far?
Google did not disclose the specific company names against whom the action is being taken.
Moneycontrol, however, has learnt that apps of Shaadi.com, jobs portal Naukri, real estate portal 99acres, streaming platforms Altt, Stage, and Aha, dating apps Truly Madly and Quack Quack, audio content platform Kuku FM, and social networking app FRND were taken down from Play Store as of March 1.
Matrimony founder Murugavel Janakiraman said in a post on LinkedIn that Google has taken down all of its over 150 apps.
As mentioned above, Google has reinstated Shaadi.com flagship Android app along with a few apps of Info Edge, one of India's oldest Internet firms.
What are Indian founders saying?
"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" said Info Edge founder Sanjeev Bikhchandani.
Murugavel Janakiraman, the founder of Matrimony, termed Google's step as a "dark day for Indian Internet”, after Google took down its apps.
Lal Chand Bisu, co-founder and chief executive of Kuku FM, said Google is the "most evil company for businesses" and the Indian startup system is "completely controlled by them".
"We are now faced with no option but to accept their terms. This will destroy our business and make Kuku FM unaffordable for the majority of the country" he said.
Vinay Singhal, the co-founder of Indian language entertainment content platform Stage, also urged the government to intervene and "save 100s of companies which are impacted and will be killed overnight if this is not taken care of"
Read: IAMAI urges Google to reinstate delisted Indian apps, seeks consultation
What is Google's defence?
In a blog post, Google said that granting a select group of developers preferential treatment over others who are already in compliance would result in an "uneven playing field" across the ecosystem, placing all other apps at a "competitive disadvantage"
Google claims that over 2,00,000 Indian developers using Google Play currently adhere to its policies.
"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," Google said.
The company further said "We’ve always respected local laws. For years, no court or regulator has denied Google Play’s right to charge for the value and services we provide...While some of the developers that were refused interim protection have started fairly participating in our business model and ecosystem, others choose to find ways to not do so" the company said in a blog post.
Google claimed that the Android and Play ecosystem collectively supported over 2.5 million jobs in India in 2022.
"Google Play invests significantly in supporting Indian developers, big and small, across every stage of an app’s journey, providing critical tools and services that help them unlock their innovation, acquire and engage users, and expand to users worldwide," the tech giant said.
"To sustain our efforts, Google Play charges a service fee when developers sell in-app digital goods," it said. The company currently levies a 15-30 percent fee for in-app purchases and subscriptions.
What recourse do the companies have?
For apps that are delisted, Google said developers can resubmit their apps by integrating any of the three billing options — Google Play's own billing system, an alternate billing system alongside Google Play's, or operating on a consumption-only basis (without any service fee) where users have paid for the content or service outside the app.
Shaadi.com founder Anupam Mittal said on X platform that the company's app has been brought back as a consumption app without any in-app billing option.
Alternatively, developers can distribute their apps through alternative Android app stores or directly through their websites. People who have already downloaded the app can also continue using them on their smartphones without any issues.
What happens next?
It remains to be seen if the Competition Commission of India will get involved. The Supreme Court’s hearing on March 19 will also be closely watched.
Previously, CCI had directed the tech giant to modify its conduct towards smartphone makers and app developers through a range of corrective measures besides imposing a penalty through two separate orders in October 2022.
As part of these measures, CCI had directed Google to allow third-party app stores on Google Play. The National Company Law Appellate (NCLAT) however subsequently set aside this direction in March 2023.
Apart from India, Google is also facing regulatory scrutiny over the business practices of its app marketplace Google Play across several markets including the United Kingdom, Japan, South Korea, and Indonesia.
What is the government saying?
Union Minister Ashwini Vaishnaw criticised Google's move to delist Indian apps from the Play Store.
"I have already called Google...I have already called the app developers who have been delisted, we will be meeting them next week...This kind of delisting cannot be permitted," Vaishnaw said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
