Indian startup founders criticized Alphabet-owned tech giant Google for removing several apps including Shaadi, BharatMatrimony, Naukri and 99acres.
Anupam Mittal, the founder of People Group, which owns Shaadi.com, called it a “dark day” for Indian internet companies. “Google has removed key apps from its App Store despite ongoing legal hearings,” Mittal posted on X, tagging antitrust regulator CCI (Competition Commission of India).
“Make no mistake – this is the new Digital East India Co. and this #Lagaan must be stopped!” Mittal wrote.
BharatMatrimony founder and CEO Murugavel Janakiraman also called it a “dark day” for Indian startups. “Google has deleted popular Indian apps from the Play Store citing Google Play Billing System (GBPS). They have deleted all 100+ of our apps including BharatMatrimony, TamilMatrimony, MarathiMatrimony, Jodii etc,” he wrote on LinkedIn.
“Google tried to implement GBPS a few years ago by forcing digital services apps to use their billing system and pay 15% or 30% of sales, compared to less than 2% what apps pay through other payment gateways Janakiraman claims.
The competition regulator had fined Google ₹936.44 crore for anti-competitive practices in Play Store policies. CCI had said that Google's Play Store guidelines require app developers to “exclusively and compulsorily” use Google Play's billing system (GPBS), not just for receiving payments for apps published through the Google Play Store are distributed or sold, but also for certain in-app purchases.
Janakiraman says that instead of adhering to the CCI order, Google changed its policy and asked companies to pay 11% or 26% commission for using a third-party billing system. They have also introduced a third option where apps cannot collect payments through the app.
“This policy applies only to digital service apps. Google does not provide any special services for digital services apps as compared to various other commercial digital apps such as. E-commerce apps, B2B apps, food delivery apps, etc.,” he says.
On Friday, Google warned it would remove “non-compliant” apps in India and said it was taking “necessary steps” to ensure Play Store policies are applied consistently across the Indian app ecosystem. Ten companies, including many incumbents, have chosen not to pay for the value they get from Google Play by receiving interim court protection, the US tech giant said, claiming these developers would Comply with payment policies of other app stores.
According to Google, treating this small group of developers differently from the vast majority of developers who pay their fair share creates an unlevel playing field across the ecosystem and puts all other apps and games at a competitive disadvantage.
Google Play charges a service fee when developers sell in-app digital products. The tech giant says its tiered pricing programs benefit Indian developers because only 3% of developers in India sell digital goods or services and therefore have to pay a service fee, the vast majority of them pay 15% or less – the lowest of any major global company App Store. Fewer than 60 developers in India face fees of over 15%, it said.
