The ongoing tussle between the Google Play Store and app publishers in India has been a topic of much debate and concern within the tech community. While it is exerting a Monopolistic force according to the Indian startups, Google says the startups need to follow the guidelines set by the giant in order to stay on the Play Store. Here’s everything you need to know about the tussle between Google and the App publishers in India.
Background
The conflict began when Google started to delist Indian apps from the Play Store for non-compliance with its billing policy. This policy mandates that certain apps use Google’s payment system for in-app purchases, which incurs a 30% service fee charged by Google. Many Indian app developers opposed this, arguing for the flexibility to use third-party payment systems.
The Tussle
The situation escalated when Google delisted nearly 10 Indian apps, citing non-compliance with the Play Store billing policy. This move was met with significant backlash from the Indian startup community, which felt that Google’s actions were monopolistic and detrimental to their businesses.
Government Intervention
The Indian government intervened, with the communications and IT minister meeting with the aggrieved app community. Following these discussions, Google agreed to temporarily reinstate all removed Indian apps pending appeals in the Supreme Court.
A spokesperson for Google said, “In the spirit of co-operation, we are temporarily reinstating developers’ apps, with appeals pending in the SC. Google maintains its right to implement and enforce its business model, as established in various courts. We will invoice our full applicable services fees in the interim and extend payment timelines for these companies. We look forward to a collaborative effort to find solutions that respect the needs of all parties.”
Implications
This tussle between Google Play Store and app publishers highlights the broader issues of market dominance and control over app ecosystems. It raises questions about the balance between fostering a competitive environment for local startups and the business models of global tech giants.
While Google encourages developers and start-ups in India to publish apps via its Play Store and shows signs of cooperation, once the startups stabilise, Google makes a controversial move that sends waves throughout the industry. This further makes it difficult for startups to consider the Play Store as their primary publishing platform for their users.
This is where local players come in, such as PhonePe’s Indus App store who is actually allowing app and game developers to choose any 3rd-party payment gateway for in-app billing, and they will not be charged any commission if they use an external payment gateway. At a later date, Indus will also provide its own in-app billing and catalog solutions, but these will remain strictly optional for app developers. Further, to accelerate developer registrations, Indus is offering zero listing fees to developers for one year.
However, due to the Play Store’s reach and its widespread use due to its built-in app store in Android phones, it is difficult for other players to create a place for themselves. In our opinion, Google should reach a middle ground with developers and start-ups, as both rely on each other heavily. Doing so would also benefit both of them in the long run.
Otherwise, the outcome of this dispute will have significant implications for the future of app marketplaces in India and potentially worldwide. It’s a pivotal moment that could define the rules of engagement between app stores and developers for years to come.