Google to temporarily reinstate delisted apps from Indian app developers

Google's move comes after a series of meetings between the tech giant, India's IT minister Ashwini Vaishnaw, and the delisted companies in the past couple of days.

Google said on March 5 that it is temporarily reinstating apps of Indian internet companies such as matrimony platforms Matrimony, Shaadi.com and online classifieds company Info Edge that were delisted from Play Store on March 1, thereby providing a reprieve to local firms.

The move would allow these apps to revert to their earlier status, prior to delisting, and offer an in-app billing option to consumers.

However, Google will begin invoicing its full applicable services fees in the interim but is extending the payment timelines for these companies as they work towards finding a solution to the contentious payment issue.

The company currently levies a 15-30 percent fee for in-app purchases and subscriptions. For developers that choose its third-party billing option, Google levies a commission of 11-26 percent, marking a reduction of 4 percent on the service fee.

“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,” a Google spokesperson said.

India's IT minister Ashwini Vaishnaw's post after Google said it will temporarily restore delisted apps

Google's move comes after a series of meetings between the tech giant, India's IT minister Ashwini Vaishnaw, and the delisted companies in the past couple of days.

Earlier in the day, the minister said that Google has agreed to restore delisted Indian apps on its Play Store and will work on a solution to the contentious payment issue.

Shaadi.com founder Anupam Mittal said that the apps should come back within 24 hours.

Mittal also mentioned that they have been requested to create a forum with representatives from both sides and a 120-day period has been agreed upon to come up with a solution that is "non-monopolistic and reflects market realities".

"We want to ensure developers have freedom of choice in choosing payment gateways and let market forces determine their operating costs. This is required for long term viability of Indian startups and a thriving digital economy that can create millions of jobs" Mittal said.

Speaking to Moneycontrol, Matrimony founder Murugavel Janakiraman thanked the union ministers Ashwini Vaishnaw and Rajeev Chandrasekhar for their time and effort for the restoration of apps on Play Store. However, he said that the "the fight is far from over and the market forces should decide the price and payment gateway charges"

Janakiraman also said he is hopeful of a dialogue between Internet companies and Google to explain the challenges that firms are facing in adopting Google billing payment system in the next few months.

The app delisting saga

On March 1, Google delisted over 100 apps of digital companies including Bharat 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.

The move came hours after the Android maker said it will take action against 10 developers who had chosen not to comply with its payment policy despite adhering to the payment policies of other app stores.

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 a March 1 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".

It also claimed to have given these developers more than three years to prepare, including three weeks after the Supreme Court’s order.

"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 adhere to its policies.

This decision however drew the ire of several prominent app developers, with Matrimony founder Murugavel Janakiraman even terming it as a "dark day for Indian Internet”.

On March 2, Google reinstated some of the apps after a few developers resubmitted them as a consumption app without any in-app billing option.

Apps that operate only as a consumption app can enable users to access content or a digital service that they have paid for outside the app and hence don't need to pay any service fee to Google.