<\/p>\n
The fundamental reason for Google suspending Indian apps was the non-payment of its Play Store \u201cservice fee”\u2014a charge that Google levies on apps that earn through subscriptions. At the moment, this fee ranges from 11% to 30%. Startups, including Bharat Matrimony and Shaadi.com, have refused to pay up. Since Indian startups also failed to win an injunction against this fee in an appeal against Google at the Supreme Court, the American tech major has decided to suspend over 10 Indian apps with over 100 million cumulative downloads. At the same time, it has restored the apps that paid the fee.<\/p>\n<\/p><\/div>\n
Founders of all major suspended apps told Mint that Play Store is their primary discovery platform. It thus contributes to most of their revenue, and this suspension could reduce their earnings by half. The founders also said that they spend heavily to rank in Google\u2019s search, too. Therefore, adding the service fee to it means Google could get as much as 80% of the revenue earned by these Indian startups. This would make their businesses unviable. Startups won\u2019t need to pay any service fee if they accept payments outside of their app but startups say this process disrupts their user experience.<\/p>\n
The competition commission is reviewing Google\u2019s compliance of its 2022 order on alleged anti-competitive practices, and a report on this could be published soon. The Supreme Court is expected to hear this matter and IT minister Ashwini Vaishnaw has stepped in. So, a resolution is expected either way. Google has temporarily restored the apps.<\/p>\n
Startups say the service fee amounts to abusing market dominance. Of the 700 million smartphone users in India, 85% use Google\u2019s Android, which also makes these startups dependent on Google for a vast part of their businesses. They claim Google\u2019s success is due to them. Google claims the policy of service fee was always clear, and that the fee isn\u2019t illegal. CCI\u2019s 2022 verdict pointed out it\u2019s not a pricing regulator. Lawyers said the startups\u2019 outreach to customers is because of Play Store\u2019s network.<\/p>\n
Yes. Google\u2019s anti-competition lawsuits and regulatory scrutiny in the US influenced the CCI\u2019s inspection of the company\u2019s India practices. What precedent the dispute lays down will depend on the ministry of electronics and IT\u2019s interpretation, the CCI\u2019s follow-up order and the Supreme Court\u2019s verdict. With India being one of the largest markets alongside the US, the outcome could be key to deciding how anti-competition allegations are investigated around the world. A precedent is likely to be set for other app marketplaces.<\/p>\n
<\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
Why did Google make such a move? The fundamental reason for Google suspending Indian apps was the non-payment of its Play Store \u201cservice fee”\u2014a charge that Google levies on apps that earn through subscriptions. At the moment, this fee ranges from 11% to 30%. Startups, including Bharat Matrimony and Shaadi.com, have refused to pay up. […]<\/p>\n","protected":false},"author":2,"featured_media":258840,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[18125,188,183,4003,185,186,73,289,187,184,1216,18124,18126,189,489,149,150,182,190],"class_list":["post-258839","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-bharat-matrimony","tag-blockchain-tech","tag-blockchain-technology","tag-cci","tag-crypto-technology","tag-cryptocurrency-technology","tag-google","tag-india","tag-metaverse-technology","tag-nft-technology","tag-play-store","tag-service-fee","tag-shaadi","tag-soul-bound-token","tag-startups","tag-supreme-court","tag-tech","tag-technology","tag-token-technology"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/258839","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=258839"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/258839\/revisions"}],"predecessor-version":[{"id":258841,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/258839\/revisions\/258841"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/258840"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=258839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=258839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=258839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}