Google initiated the removal of apps belonging to 10 Indian companies, including prominent matrimony apps like Bharat Matrimony, amid a dispute over service fee payments. This move has the potential to ignite a showdown between the tech giant and startup firms in India. The disagreement revolves around Google’s imposition of a service fee ranging from 11% to 26% on in-app payments, following an order from India’s antitrust authorities to dismantle its earlier fee structure of 15% to 30%.
Despite court decisions in January and February, including one by the Supreme Court, not providing relief to startups, Google proceeded with its enforcement actions. Matrimony.com founder Murugavel Janakiraman expressed dismay over the removal of apps, labeling it as a “dark day of Indian Internet”.
Notices of Play Store violations were sent to Matrimony.com and Info Edge, the latter operating a similar matrimony app called Jeevansathi. Both companies are evaluating the notices and contemplating their next steps.
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Shares of Matrimony.com and Info Edge experienced declines before recovering slightly. Info Edge founder Sanjeev Bikhchandani affirmed compliance with Google’s policies, highlighting the timely payment of pending invoices.
In response, Google defended its stance, emphasizing the value it provides to app developers and its right to levy service fees. The tech giant underscored that a vast majority of Indian developers on the Google Play platform are not subject to service fees, which support investments in the app store and Android mobile operating system.
This development may incite backlash from the Indian startup community, which has long protested against Google’s practices. As Google holds a dominant position in India’s mobile market, its actions could have significant ramifications for the startup ecosystem.
