Google and Indian app developers will suspend their dispute over the tech’s big billing policies for four months, the senior executive of a startup in the country said.
The US company on Friday removed more than 10 Indian apps, including matrimonial app Shaadi, for not adhering to its policy of charging service fees when in-app payment options other than Google’s are used on the Play Store. It restored Shaadi and most of the other deleted apps after a backlash from the government and Indian startups.
Anupam Mittal, CEO of People Group, which heads Shaadi, thanked Union Ministers Ashwini Vaishnaw and Rajeev Chandrasekhar for their intervention in the dispute.
“Thanks to the tireless efforts of a handful of founders and your support, the Indian startup ecosystem breathed a sigh of relief yesterday as Google was forced to postpone its decision to impose a monopolistic lagan (tax), albeit temporarily,” Mittal said on X (formerly Twitter) on Wednesday.
Mittal said that most of the deleted apps are available again with in-app billing as before on the Play Store. “A period of 120 days has been agreed to come up with a solution that is non-monopolistic and reflects the forces of the free market,” he said.
Google agreed Tuesday to temporarily restore deleted apps after a meeting with Vaishnaw, India’s information technology and telecom minister, and startup executives.
However, the tech giant said it will begin “billing” the full applicable service fees in the meantime, but extended payment terms for these companies until a court resolution is reached.
Vaishnaw, who has been a vocal supporter of startups in this space, had also earlier held another round of talks with representatives of the affected startups and Google, where he asked the tech major to restore the apps as they were on March 1, 2024. before it will be removed from the Play Store.
Google announced last Friday that it had removed apps from ten developers from the Play Store for alleged non-compliance with its User Choice Billing (UCB) system. These include apps like Shaadi, Bharat Matrimony, Balaji Telefilms’ Altt (formerly ALTBalaji), audio platform Kuku FM, dating service Quack Quack and Naukri.com and 99 Acres from the Info Edge group.
Although the apps were available again within a day, they ran on what Google calls the “consumption-only” model, where products or services, whether digital or physical, cannot be purchased from within the app.
Traditionally, the Play Store charges a 15 to 30 percent fee on in-app purchases and subscriptions for those who use Google’s billing system. For developers who opt for third-party billing, Google levies a commission of 11 to 26 percent, which amounts to a 4 percent discount on the service fee.
Several companies reported a drop in sales of up to 40 percent within one day of delisting, Business Standard previously reported.
First print: March 7, 2024 | 12:02 pm IST