Google removes apps from Play Store due to compliance violations, startups voice criticism

The move is expected to further escalate a three-year legal battle between Indian startups and tech giants over Play Store policies. Despite protests from startups over Google's sudden suspension of the app, legal experts said the company's policy stance could strengthen its case in future Supreme Court hearings.

Our app was removed from the Play Store on Friday morning, along with a notice and blog post detailing Google's policies regarding payments in the Play Store. There has been no prior indication in this regard and we will seek legal recourse against Google in both the long and short term,'' said Murugavel Janakiram, founder and CEO of Bharat Matrimony. 5 million net downloads on the Android application marketplace.

Some of Bharat Matrimony's apps, which were available for download from the Google Play Store until noon Friday, are now suspended in India, while other People Group's Shaadi.com apps received a Google notification but were not immediately available. It wasn't stopped. Info Edge's matrimonial platform Jeevansathi, real estate search platform 99acres, and job search platform Naukri have been suspended from the Play Store.

Sanjeev Bhikchandani, founder and executive vice chairman of Info Edge, said the notification came as a surprise to the company. In our opinion, we have been following Jeevan Sati since February 9th. We paid all our bills on time. We have contacted Google and they have responded that they are compliant in response to the notification. ”

Ten companies, including many long-established companies, have chosen not to pay for the tremendous value they receive from Google Play by securing interim protection from the courts for an extended period of time. These developers adhere to other app stores' payment policies. “Courts and regulators have not denied Google Play's right to charge for the value and services it provides,” Google said in a statement.

On February 9th, the Supreme Court also refused to interfere with our rights and after giving these developers more than three years to prepare, including three weeks from the Supreme Court's order, we will take the necessary steps. ” Google added.

We always work with developers to support them through policy and to find workable solutions, but this small group of developers pays their fair share of the costs. Allowing a large number of developers to receive discriminatory treatment creates an uneven playing field across the ecosystem, putting all other apps and games at a competitive disadvantage. Where appropriate, enforcing our policies may include removing non-compliant apps from Google Play. ”

Google's actions have sparked outrage among startups, with calls to develop apps to replace the Play Store. However, for experts, it may not be easy given Google's far-reaching influence. According to market research firm StatCounter, Android accounts for over 83% of India's over 700 million smartphone users as of the end of January.

The startups claim that Google is abusing this power and have asked the Competition Commission of India (CCI) and the Supreme Court for relief.

Google is a modern monopoly, trying to collect rent. These (app suspension) measures will completely destroy many businesses and make many products unaffordable to large parts of the country,” said Vinod Kumar Meena, co-founder of Kuku FM. Told.

Anupam Mittal, founder and CEO of People Group, termed the move as a “blatant violation of the CCI's orders”. In its second order in 2022, the CCI said it had “abused Play Store's dominant position in the country” by forcing startups to use the payment interface and getting incentives ranging from 11% to 30%. It imposed a fine on Google of $936.44 million ($113 million). , based on each app's revenue.

Google is challenging the CCI order, but both the ongoing case and the latest suit are under judicial consideration. Final hearing on this issue is pending before both the CCI and the Supreme Court.

Anand Runia, founding partner of early-stage investor India Cootient, said the notification was a “total violation of the CCI order”. Runia's statement reflects generally negative investor sentiment towards Google's move, which could hurt the ability of domestic startups to raise meaningful funding in the long term. Therefore, investors and the startup community will likely object to this move.

A senior legal consultant who works closely with Google said on condition of anonymity that Google's current Play Store policy allows companies to use their own browser-based services to accept payments for subscriptions and services outside of Google's ecosystem. Said it is allowed to configure payment gateways and interfaces. pay Google any Service Fees; “Companies should be free to invest in their own payment infrastructure and that should be a fair solution,” he added.

However, startups view this negatively. Bharat Matrimonas Janakiram said this model, which Google calls the consumption model, means users will no longer be able to pay for any services on the mobile app. “Purchases with Appno payment methods will be allowed within the mobile his app,'' he added.

Ramesh Kailasam, president and chief executive officer of industry group IndiaTech.org, said such a move would destabilize Indian businesses and discourage Indian startups from attracting global and local investors in the affected sectors. It said it would hurt its cash flow and ability to attract strong investments. “The options offered will not only pose serious problems for startups and consumer internet technology companies, but will also create friction in the user experience.”

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Published: March 1, 2024, 9:21 PM IST

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