Government officials will convene with Google representatives and startup executives to address app-related concerns on Monday.

by Jaswinder Kaur / 04-03-2024 / comments
Government officials will convene with Google representatives and startup executives to address app-related concerns on Monday.

Eight out of the ten startups that were removed from the Google Play Store on Friday have been reinstated, with the remaining two also in the process of being brought back online. This follows their acceptance of a compromise proposed by Google, the US technology giant.

Among the relisted apps are well-known platforms like Naukri.com, Jeevansathi.com, Shaadi.com, and Bharat Matrimony. Ashwini Vaishnaw, the Union Minister for Communications, Electronics, and IT, intervened in the matter on Saturday and has arranged a meeting between the involved parties for Monday. Vaishnaw expressed the government's commitment to supporting the startup ecosystem and stated that both app developers and Google representatives will present their perspectives during the meeting.

Under Google's revised approach, the relisted apps will not be charged for being on the Play Store as long as transactions do not go through Google's billing system. Instead, they can utilize third-party payment channels via their websites without incurring the 15 to 30 per cent commission demanded by Google's billing system. However, those opting to use Google's payment system will still be subject to the commission.

Many startups have voiced dissatisfaction with Google's abrupt delisting action, citing inadequate notice and concerns over the hefty commissions. They argue that these fees could be passed on to consumers, labeling it a "Google tax" that threatens their viability. Additionally, they highlight alleged preferential treatment towards Indian developers, noting similar arrangements being implemented in the European Economic Area and the UK.

According to sources familiar with the situation, Google's delisting decision came after the Supreme Court declined interim relief to petitioners challenging its billing policy. Google maintained that the commission structure is based on commercial agreements and emphasizes developers' freedom to opt-out of using its app store.

Google asserts that the vast majority of app developers, approximately 97 per cent, do not pay any service fee. Similarly, Apple Inc. reports that 87 per cent of developers on its platform are exempt from commissions. This information was provided in a statement to the Standing Committee of Finance, reinforcing Google's argument that the startup ecosystem remains largely unaffected by the commission structure. In summary, the reinstatement of delisted startups on the Google Play Store follows negotiations and a compromise with Google, with ongoing discussions addressing concerns over commissions and billing policies within the app development community.

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