Alphabet’s Google has announced its intention to reinstate Indian apps that were previously removed from the Play Store due to a billing dispute. This decision marks a significant reversal following pressure from the Indian government and local internet startups.
The dispute arose when Google removed over 100 Indian apps, including popular ones operated by Matrimony.com, for non-compliance with its policy requiring payment of a service fee for the use of in-app payment options other than Google’s own.
In a statement issued on Tuesday, Google expressed its willingness to temporarily reinstate the apps of developers who have pending appeals in the Supreme Court. This move is described as being made “in the spirit of cooperation.”
The decision to reinstate the apps came after a closed-door meeting between Sanjay Gupta, the head of Google India, and IT minister Ashwini Vaishnaw. According to a source familiar with the discussions, the meeting was instrumental in reaching this resolution.
The removal of the apps had triggered strong criticism from Indian companies, many of which have been engaged in disputes with Google for an extended period. The root of the conflict lies in the efforts of some Indian startups to resist Google’s imposition of a fee ranging from 11% to 26% on in-app payments. This comes after India’s antitrust authorities had previously directed Google not to enforce an earlier fee structure of 15% to 30%. The startups have taken legal action against Google’s policy, filing cases in various courts, including the Supreme Court, and lodging complaints with the antitrust watchdog.
In response to the situation, Ashwini Vaishnaw expressed optimism about the possibility of reaching a long-term resolution between the startup community and Google in the coming months. However, he criticized Google’s decision to remove the apps, stating that such actions “cannot be permitted.”
The dispute between Google and Indian startups underscores broader tensions surrounding app store policies and fees. The issue has become a focal point for regulators and policymakers worldwide, reflecting concerns about the dominance of major tech platforms and their control over app distribution and monetization.
Google’s decision to reinstate the Indian apps represents a temporary reprieve for affected developers and underscores the complexity of the issues at hand. As discussions continue between Google, Indian startups, and regulatory authorities, the outcome could have far-reaching implications for the future of app store policies and the digital ecosystem in India.
