Indian Firms Comply with Google’s Play Store Billing Rules, Seek Government Intervention
Indian Companies Comply Reluctantly with Play Store Billing Rules After Google Delists Their Apps Last Week
Indian companies reluctantly follow Google Play rules as they also push for regulatory action.
Indian firms whose apps were delisted by Google last week have begrudgingly started to comply with Play Store billing rules to get their apps back on the store. This move comes after apps like Shaadi, Matrimony.com, and Bharat Matrimony were restored after being removed from the Play Store on Friday.
The Battle of In-Purchases
Google currently offers three options to developers for in-purchases. The first is the consumption-only model, where developers like Netflix only offer consumption to account holders without paying a service fee. The second is Google Play’s billing system, in which the developer agrees to pay Google a fee of either 15% or 30% of the revenue. And finally, developers have the option to offer an alternative billing system, which reduces the fee paid to Google by roughly 4%. Many protesting developers have initially opted for the consumption-only model, while others have reluctantly chosen the Google Play billing system.
Frustrated by Google’s actions, the affected developers have sought intervention from the government and India’s antitrust watchdog. IT Minister Ashwini Vaishnaw expressed his disagreement with Google’s delisting of apps and engaged with the company to address the issue. The affected developers are meeting with the minister today to discuss the matter further.
Lal Chand Bisu, co-founder and chief executive of Kuku FM, called out Google for offering preferential treatment to large companies like Spotify. Last year, during the Epic v Google trial in the U.S., it was revealed that Spotify pays no fees on Google Play for in-app purchases due to a deal between the two companies. This highlights the disparity in treatment between big and small developers.
Distribution Challenges for Developers
One of the main concerns raised by developers is the distribution problem caused by Google’s fees. Startups pointed out that they already spend a significant amount of marketing money to drive app installs, and Google’s fees only add to their financial burden. Anupam Mittal, founder of Shaadi.com, echoes this sentiment, stating that companies lose a substantial portion of their revenues due to Google’s fee structure.
While alternative app stores are allowed on Android, they have failed to reach a massive scale. Aptoid, for example, drives half a billion downloads per year globally. In India, PhonePe’s recently launched Indus App Store is still in its early stages and may not provide sufficient distribution for apps. This leaves developers heavily reliant on the Play Store for downloads.
Murugavel Janakiraman, CEO of Bharat Matrimony, expressed concerns about sideloading as a viable option for his company. With over 150 apps on the Play Store, offering them through sideloading would not be an effective solution, as most users prefer downloading apps from the Play Store itself. The recently launched Indus App Store by PhonePe also poses questions about its ability to compete with the Play Store.
Google’s Justification
Google has defended its position, stating that it has provided developers with multiple options to comply with its rules. The company also emphasized that less than 60 developers in India are subject to fees higher than 15%. Google’s argument is that granting preferential treatment to a small group of developers creates an unfair playing field and disadvantages other apps and games.
Furthermore, Google mentioned that developers have had three years to comply with Play Store rules and were given an additional grace period of three weeks after the Supreme Court declined the plea from protesting firms to prevent Google from taking action against them.
Seeking Regulatory Action
In response to Google’s action, protesting firms are seeking regulatory intervention. Sanjeev Bikchandani, co-founder of Info Edge, which develops apps like Naukri and 99Acres, has appealed to the Competition Commission for India (CCI) to take action against Google. Snehil Khanor, CEO of dating service TrulyMadly, alongside other founders, argued that Google has not complied with an earlier ruling from the CCI that allows developers to use a third-party billing system.
The Internet and Mobile Association of India (IAMAI), a prominent industry association, has also expressed deep concern over Google’s move to delist apps. Indian startups wrote to the CCI on March 1, urging the antitrust body to intervene and request the restoration of apps that haven’t yet been restored.
Q&A: Answering the Readers’ Concerns
Q: What are the alternatives for developers to distribute their apps if they are dissatisfied with the Play Store?
A: While alternative app stores are allowed on Android, they have not achieved widespread popularity. Developers may explore options like sideloading, which allows users to install apps from sources other than the Play Store. However, sideloading has its limitations as most users prefer the convenience and trust associated with the Play Store. The recently launched Indus App Store by PhonePe aims to provide an alternative, but its current reach may not be sufficient for widespread app distribution.
Q: How can smaller developers compete with bigger companies that receive preferential treatment from Google?
A: The issue of preferential treatment for larger companies is indeed a concern. Google’s admission during the Epic v Google trial that Spotify pays no fees for in-app purchases raises questions about fair treatment. To address this, smaller developers can voice their grievances through regulatory bodies like the Competition Commission for India (CCI) and seek intervention. By advocating for a level playing field and equal treatment, smaller developers can strive for fair competition.
Q: What impact does Google’s action have on the app economy in India?
A: Google’s action has sparked debates and concerns within the Indian app economy. Developers are grappling with increased financial burdens due to Google’s fees, leading to potential revenue losses. The dominance of the Play Store in app distribution limits the options available to developers, as alternative app stores have struggled to gain significant traction. This situation calls for more comprehensive discussions and possible reforms to ensure a balanced and fair app economy.
Looking Ahead
The ongoing dispute between Indian app developers and Google highlights the challenges faced by smaller players in a digital marketplace dominated by tech giants. As the pressures for fair competition and regulatory scrutiny increase, it’s crucial for both developers and regulatory bodies to explore solutions that promote transparency, create an even playing field, and ensure the well-being of the app economy.
References:
- Delisted by Google: Indian Firms Comply with Play Store Billing Rules
- Government Intervention Sought as Indian App Developers Protest Google’s Delisting
- Google Defends Play Store Rules Amidst Developer Backlash
- Distribution Challenges for Indian Developers
- Seeking Regulatory Action: Indian Startups Seek CCI’s Intervention
Hey folks, what are your thoughts on the ongoing dispute between Indian app developers and Google? Do you think it’s fair for smaller developers to comply with Google’s Play Store billing rules, or should there be more flexibility in the system? Share your opinions and let’s have a lively discussion! Don’t forget to spread the word by sharing this article on your favorite social media platforms. 📱💻🌍 #GoogleVsAppDevelopers #PlayStoreBilling #TechNews
