Google has initiated the removal of apps from 10 Indian companies, including popular matrimony apps like Bharat Matrimony, from the Play Store amidst a dispute over service fee payments, potentially igniting tensions with startup firms.
The conflict revolves around attempts by certain Indian startups to resist Google’s imposition of a service fee ranging from 11% to 26% on in-app payments. This dispute arose after the country’s antitrust authorities instructed Google to dismantle its previous fee structure of 15% to 30%.
Despite two court rulings in January and February, including one by the Supreme Court, not granting relief to startups, Google proceeded with its decision to charge the fee or remove apps.
Founder of Matrimony.com, Murugavel Janakiraman, denounced the removal of their dating apps, labeling it as a “dark day of Indian Internet.”
Google’s notices of Play Store violations were sent to Matrimony.com and Info Edge, prompting both companies to review the notice and contemplate their next steps.
Shares of Matrimony.com and Info Edge experienced declines following the news. However, Info Edge founder Sanjeev Bikhchandani affirmed compliance with Google’s policies, stating that all pending invoices were cleared promptly.
In response, Google defended its actions, asserting its right to charge fees and emphasizing its support for investments in the app store and the Android operating system. The company highlighted that only a small percentage of Indian developers using the Google Play platform are required to pay service fees.
Google’s decision to remove apps could evoke dissatisfaction within the Indian startup community, which has long protested against the practices of the US tech giant. With Google’s dominant presence in the Indian market, the repercussions of this dispute could have significant implications for the country’s digital ecosystem.
