Indian Startups Responds to Google's 'Brazen' Move
Indian startups complain against Google: Indian startups petition an antitrust watchdog to compel Google to relist applications that were removed for policy reasons, asserting that the action is detrimental to competition and the market. For policy reasons, Google delisted approximately 200 Indian applications and reinstated only 15.
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CCI investigation on Google and Indian startups
Indian Startups have petitioned the nation's preeminent antitrust regulator to compel Google to reinstate the applications it removed on Friday for policy reasons. Google reinstated only about 15 of the approximately 200 Indian applications that it had previously removed, including Naukri, 99acres, Bharat Matrimony, and Kuku FM.
Indian tech firms challenge Google's actions
In accordance with a letter compiled by the Alliance of Digital India Foundation (ADIF), Google's ‘brazen’ action of removing these applications from the Google Play Store was anti-competitive. The startups further advocate for the Competition Commission of India (CCI) to request Google to rescind its decision. ADIF, according to the report, claimed in a letter to the CCI dated March 1 that Google's action would ‘irreparably harm the entire market.’
In the interim, in an effort to resolve the current crisis, Union Ministers Ashwini Vaishnaw and Rajeev Chandrasekhar met separately with Google and Indian startups. Despite holding multiple meetings on the subject, Vaishnaw, the Union Minister for IT and Communications, has refrained from disclosing additional information, stating, "I will divulge once it is finalized." ADIF met the Minister of State for IT and Electronics, Rajeev Chandrasekhar, during which the startups expressed their concerns regarding the subject and requested government assistance.
An impasse has emerged between Indian startups and Google regarding the latter's determination to levy a fee ranging from 11 to 26 percent on in-app purchases. It is worth mentioning that the CCI previously restrained Google from implementing a system that assessed in-app fees ranging from 15% to 30% in an earlier order.
The Indian startups assert that Google is exploiting its market dominance by charging 11–26% for in-app payments when the average fee charged by a payment gateway is between 0.5 and 2%. In clear violation of the CCI order, they also assert that their apps are compelled to use Google's API when implementing any Google model, which grants the tech giant access to their customer data.
Google's actions against Indian startups
Google, on the other hand, has maintained that in-app purchases contribute to the ecosystem development and promotion of the Play Store and Android. Additionally, the organisation stated that by treating a minority of developers differently, an unequal playing field is created for the overwhelming majority of developers who contribute fairly.
