Know why Indian start-ups are fighting against Google’s dominance

Indian tech startups have decided not to give up the fight against the American internet giant Google so easily. They have raised a strong objection over Google’s dominance and new policies with the ministry.

In a virtual meeting with the senior officials of the ministry of electronics and information technology (MeitY) and its secretary Ajay Sawhney, nearly forty Indian startups raised their concern regarding Google’s monopoly. Those present in the meeting included Paytm, GOQii, India Quotient, A91 Partners, Innov8, Bharat Matrimony, upGrad, Dream11, TrulyMadly, PhonePe, RazorPay, Sharechat, Policy Bazaar, Matrimony.com and CCAvenue.

What is the issue:

The bone of contention is Google’s Play Store billing policy.  Many startup founders have conducted marathon meeting, discussions and taken legal opinion recently over Google’s PlayStore policy. Some have approached Reserve Bank of India (RBI) and the Competition Commission of India (CCI) against it.

The issue is largely around the commission on every transaction that Google will take, which even leading internet players said will not be feasible. Facing intense criticism over its Play Store billing policy, Google on Monday said it has extended the time for developers in India who use alternative payment system, to integrate with the Play Store billing system till March 31, 2022, thus deferring the enforcement of 30 per cent commission on in-app purchases of digital goods from its Play Store in the country.

A co-founder of a fin-tech company, wishing anonymity, told The420 when the entire margin is of 20 per cent then how we will pay Google 30 per cent. Google dominates app ecosystem and it is now playing Big Boss. Indian startups can’t be slaves to American giants. We need a democratic market to operate.

Another point of confrontation was a recent row between Google and Paytm where the Indian app was banned from its play store for violating the rules. However, Paytm said it did not break any guidelines and returned to the platform. Meanwhile, to take head-on with Google Paytm has launched a mini-app store to support Indian developers. The launch of the store came days after it was banned from Play Store.

While the removal of the app may be a trigger, Paytm’s move is perhaps a direct fallout of Google mandating that developers listed on its Play Store use its billing service. Google levies a 30% commission on any transaction made for a digital product or service through its in-app billing system.

However, no formal representations were made related to these issues, but MeitY will take opinion of larger stakeholders about it.

An insider from the meeting said now some companies after seeking legal opinion will send it in writing to the ministry to regulate Google.