Google takes action against 10 Indian app developers over Play Store billing policy violation

Google stated that some of the developers that were refused interim protection have started fairly participating in the company' business model and ecosystem

Google on March 1 delisted over a dozen of apps by prominent Indian digital companies including Matrimony, Info Edge, and Shaadi.com from Play Store for not complying with the company's app billing policy for an "extended period of time"

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.

The move came hours after Google said that it is taking action against apps of 10 Indian companies that had chosen not to comply with its payment policy, despite adhering to the payment policies of other app stores.

Google did not disclose the specific company names against whom the action is being taken.

However, Moneycontrol has observed that apps of matrimony firms Matrimony, Shaadi.com, streaming platforms Altt, Stage, and Aha, dating apps Truly Madly and Quack Quack, audio content platform Kuku FM, and social networking app FRND have been taken down from Play Store as of March 1.

Later in the day, Info Edge's Naukri and 99acres were also removed from Google Play Store.

These companies were petitioners in a case against Google's app billing policy in the Supreme Court.

"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 in a blog post.

No protection from Supreme Court

Google's action comes 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.

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.

Read: Info Edge's Naukri and 99acres removed from Google Play Store

Sanjeev Bikhchandani, the founder of Info Edge, told Moneycontrol that they have been compliant with the policies since February 9 and all dues of Google have been paid in a timely manner.

"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" Bikhchandani said in a post on X,  the social media platform previously known as Twitter.

Murugavel Janakiraman, the founder of Matrimony, termed Google's step as a "dark day for Indian Internet". He told Moneycontrol that Google has taken down about 7-8 of the matrimony firm's apps.

Meanwhile, 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 completely destroy our business and make Kuku FM unaffordable for the majority of the country" he said in a post on X platform.

Android currently powers 96-97 percent of smartphones in India, as per industry estimates.

Read: IAMAI urges Google to reinstate delisted Indian apps, seeks consultation

'Uneven playing field'

In the blogpost, 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"

"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 the blogpost.

Google claims that over 200,000 Indian developers using Google Play currently adhere to its policies.

If 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.

Developers can also 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.

Backlash from Indian developers

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 that these commission fees are "extremely high" and "unfair".

Google had paused the enforcement of its in-app billing system in India in November 2022, following the CCI's antitrust order that directed the company not to restrict app developers from using third-party billing or payment processing services to purchase apps or for in-app billing on Google Play.

Since then, Google has taken several steps to modify its policies including lowering its commission fee and introducing third-party billing for in-app purchases.

In May 2023, the tech giant said these changes comply with the CCI's order and it will start enforcing the Play billing policy, but many local app developers disagree and have challenged it in court.

India is a key market for Google's future growth, where it serves more than half a billion users through its suite of products.

In the blogpost, Google said that 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" it said.

Only 3 percent of developers in India sell digital goods or services and hence need to pay a service fee, the vast majority of whom pay 15 percent or less, the company said.

Less than 60 developers on Google Play are subject to fees above 15 percent, it added in the blogpost.

Note: The story has been updated to incorporate all the key updates on the development.