Indian Startups Request Government To Ask Google To Reinstate Apps

(RTTNews) - Indian startups had requested government officials and the Competition Commission of India or CCI to ask Alphabet Inc.'s (GOOG, GOOGL) Google to reinstate their apps in Playstore.

Rajeev Chandrasekhar, IT minister of state, posted on X/Twitter, "Today, startups presented their concerns regarding a few policies of Google. Assured them that the Ministry of Electronics and IT will take it up with Google for a sustainable and long-term solution."

The startups also expressed their concern over the tech giant's arbitrary revenue share of 15 to 30 percent for its services.

"We pay only 0.25 per cent commissions on third-party payment gateway charges. Most companies do not pay more than 2 per cent, which is on the higher side. Google, on the same service, is charging a 15-30 per cent share," said Vinay Singhal, founder and chief executive officer of STAGE.

However, the U.S.-based company maintained that only 3 percent of Indian developers pay a service fee to sell digital goods or services, out of which 'less than 60 developers on Google Play are subject to fees above 15 per cent'.

Further, the developers accused that Google's billing policy gave access to every transaction done in the app, including sensitive user data.

Singhal added, "On top of that, they have asked for audit rights on our books in our office. They can basically raid our office at any point and audit our books. By doing that, they are in direct conflict with the Digital Personal Data Protection or DPDP Act, where we have to provide Google with this data without the consent of users".

Last week, the technology conglomerate delisted apps from 10 developers, including popular apps like shaadi.com, Bharat matrimony, and 99 acres for alleged non-compliance with its user choice billing or UCB system. However, a few apps made their way back to the Play Store by complying with Google's consumption-only model, under which the apps undertake transactions on their respective websites, instead of via the in-app billing system.

However, several companies reported a revenue cut of 40 percent within one day of delisting, while others complained of the inability to acquire new customers.