In a recent development, Google's decision to remove certain Indian apps from its Play Store due to a dispute over service fee payments has sparked a contentious debate. Despite the tech giant's temporary restoration of delisted apps pending appeals, startup founders remain resolute in their opposition to Google's imposition of fees ranging from 11 to 26 percent on in-app payments.
Following discussions with Union IT and Telecom Minister Ashwini Vaishnaw and Minister of State for Electronics and IT, Rajeev Chandrasekhar, startup founders reiterated their stance against Google's fee structure. Murugavel Janakiraman, CEO of BharatMatrimony, expressed gratitude for the government's support while maintaining that the proposed fees are unjustifiable and discriminatory.
Several prominent apps, including Altt, Stage, Aha streaming platforms, Truly Madly, Quack Quack dating apps, Kuku FM audio content platform, and FRND social networking app, were delisted by Google amid the ongoing dispute.
Snehil Khanor, Co-Founder & CEO of TrulyMadly, highlighted the financial strain imposed by Google's fees, which can reach up to 26 percent of an app's revenue. To address these concerns, Khanor announced plans to establish a forum for ongoing dialogue between app developers and Google representatives, aimed at reaching a resolution within the next 100-120 days.
At the ADIF conference, founders revealed a significant drop in business, estimated at around 40 percent, following the removal of their apps from the Play Store. Prateek Jain, Associate Director of ADIF, emphasized the importance of government support for the startup ecosystem in realizing the Digital India vision. He expressed optimism for a favorable resolution of the pending case with the Competition Commission of India (CCI), which would mark a significant milestone for the digital economy.