Google Reinstates Indian Apps on Play Store Following Government Mediation
March 5, 2024 Update: Google has temporarily restored all Indian firms’ apps on the Play Store after discussions with India’s IT Minister Ashwini Vaishnaw. This move comes amid ongoing tensions between the tech giant and Indian developers over Play Store billing policies.
Temporary Resolution Reached
In a statement, Google announced:
“In the spirit of cooperation, we are temporarily reinstating the apps of the developers with appeals pending in the Supreme Court. Google maintains its right to implement and enforce its business model, as established in various courts. We will invoice our full applicable service fees in the interim and are extending payment timelines for these companies.”
Key apps restored include:
- Matrimony services: Shaadi, Matrimony.com, BharatMatrimony
- Job and real estate platforms: Naukri, 99acres (Info Edge)
- Audio streaming: Kuku FM, Stage
- Entertainment: Altt (Alt Balaji)
- Dating service: QuackQuack
The Billing Policy Controversy
Google currently offers developers three in-app purchase options:
- Consumption-only model (No service fee - e.g., Netflix)
- Google Play billing system (15-30% fee)
- Alternative billing system (~4% fee reduction)
Most protesting developers have temporarily opted for the consumption-only model while seeking regulatory intervention.
Developer Concerns and Government Response
Indian developers have raised several key issues:
- Unequal treatment: Kuku FM CEO Lal Chand Bisu highlighted Google’s secret deal with Spotify that exempts them from fees
- Revenue impact: Shaadi.com founder Anupam Mittal estimates significant revenue loss due to Google’s fee structure
- Distribution challenges: Alternative app stores struggle to match Play Store’s reach
IT Minister Vaishnaw stated Google’s delisting action “can’t be permitted” and has been actively mediating between the parties.
Google’s Position
The tech giant maintains:
- Only 60 Indian developers face fees above 15%
- Differential treatment creates an unfair ecosystem
- Developers had 3+ years to comply with policies
- Provided 3-week grace period after Supreme Court decision
Ongoing Regulatory Actions
Developers continue seeking intervention through:
- Competition Commission of India (CCI): Alleging Google’s non-compliance with 2022 ruling on third-party billing
- Industry associations: IAMAI expressed deep concern over app delistings
- Government engagement: Ongoing discussions with IT Ministry
The Road Ahead
While the temporary reinstatement provides relief, the core issues remain unresolved. The situation highlights:
- The power imbalance between global tech platforms and local developers
- Challenges in creating viable Android app store alternatives
- Need for clearer digital ecosystem regulations in India
Stakeholders continue discussions to find a sustainable solution that balances developer needs with platform sustainability.
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