 "Vantage | Google vs apps fight has a big message for India")
In recent developments, a showdown has emerged between Google and Indian app developers, shedding light on the dynamics of tech dominance and regulatory intervention. Let’s delve into the crux of the matter and explore its implications.
Start of the dispute
Last Friday, Google stirred controversy by removing around 200 Indian apps from its Play Store. This move affected prominent platforms like Naukri, 99 Acres, Shiksha, Shaadi.com and Kuku FM. The catalyst? Google’s implementation of a new payments policy, which demanded a cut ranging between 11 and 26 per cent for in-app transactions.
In-app payments are transactions made within applications to unlock premium features or access additional services. Google’s insistence on charging for these transactions sparked dissent among Indian app developers, who highlighted alternative payment gateways in India, such as Razorpay and Cashfree, which charge significantly lower fees, ranging from zero to 4 per cent.
Government intervention and allegations
The situation escalated as the Indian government stepped in, with the IT Minister holding talks with both parties to seek a resolution. Simultaneously, app developers approached the Competition Commission of India (CCI), alleging Google’s exploitation of its dominant market position. They accused Google of causing irreparable harm to the market prompting regulatory scrutiny.
Under mounting pressure, Google reversed its decision, relisting all the removed Indian apps and deferring to the Supreme Court for a final resolution. However, this controversy prompts critical questions: Does Google have a legitimate case and why does India rely so heavily on Google’s ecosystem?
Impact Shorts
View AllGoogle’s defence and market dynamics
Google defended its actions citing the consent of a vast majority of Indian developers to the new billing system. They also emphasized that only a small fraction of developers utilised in-app payments, with most charged below 15 per dent. Nonetheless, the core issue revolves around the monopolistic grip Google maintains over the Android ecosystem in India.
With nearly 95 per cent of smartphones in India running on Android, Google’s Play Store is the de facto marketplace. This dependency underscores the need for indigenous platforms to foster accountability and regulatory compliance. Initiatives like PhonePe’s Indus App Store signal a potential shift, albeit fraught with challenges of consumer behaviour and market penetration.
This episode underscores the imperative for India to cultivate homegrown platforms and technologies, enabling regulatory oversight and fostering innovation. Drawing parallels with Google’s accountability in the US market, India must adopt a proactive approach to tech regulation and indigenous development particularly in emerging fields like artificial intelligence.
While the clash between Google and Indian app developers may have subsided for now, it highlights deeper issues of tech dominance and regulatory oversight. As India navigates its digital future, fostering a robust ecosystem of homegrown platforms and technologies becomes paramount for ensuring sovereignty and innovation in the digital age.
Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views.
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