Google recently removed numerous apps created by major Indian digital companies from its Play Store, including popular matrimony and dating apps like Shaadi.com and TrulyMadly. This came as a shock to many. Google said it took this drastic action because these apps were not complying with its payment policy requiring use of Google’s own billing system.
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Google Reinstates Banned Indian Apps After Backlash
The Internet and Mobile Association of India (IAMAI) quickly slammed Google’s moves, essentially saying Google was abusing its market dominance. IAMAI asked Google to stop this high-handed behavior and reinstate the apps immediately.
In response, Google backed down rapidly. Within 24 hours, Google put back apps from companies like Shaadi.com owner Info Edge. Info Edge co-founder Sanjeev Bikchandani posted about their success, praising his team’s all night effort to deal with the crisis and get their apps reinstated.
It seems Google realized it had gone too far attacking major Indian apps so popular with Indian consumers. The public outcry and coordinated industry pressure made Google recalculate quickly. This entire episode shows the growing tension between Google and Indian app developers. Google wants to mandate use of its own payment systems so it can collect fees. But Indian apps say this is an abuse of Google’s dominance of the Android ecosystem in India via the Play Store. They already pay fees to other app stores and don’t want Google freeriding.
This issue likely hasn’t gone away. The dispute over Google’s 30% cut on app store purchases, which led to strained relations between the tech giant and Indian developers last year, probably still lingers despite the temporary compromise reached. Google, aiming to bring its app store model in India in line with how it operates in other countries, still wants to charge those commission fees for purchases made through the Play Store. However, Indian app makers, used to keeping a larger portion of their earnings, still wish to preserve their existing revenue streams and profit margins. So while both sides agreed to a tentative peace for now, there is likely an uneasy truce rather than a full resolution.
