Union IT Minister Ashwini Vaishnaw announced on Saturday, that Google has started re-storing apps by 10 Indian developers on the Play Store. This move came after the apps were delisted for not adhering to Google’s payments policy. The intervention by the Indian government underscores the commitment to bolstering the start-up ecosystem within the country.
Government’s Intervention
Ashwini Vaishnaw said that the government of India is actively helping in ensuring the support for India’s growing start-up landscape. Following Google’s delisting of Indian apps, the IT Minister personally engaged with the tech giant, advocating for the affected Indian developers. Google has shown a willingness to cooperate, marking a positive step towards resolving the issue. A meeting has been scheduled on Monday between Google, the government, and the impacted developers to further discuss the matter.
IT Minister Ashwini Vaishnaw said, “We have told (Google) that it must support India’s start-up ecosystem. They have already started re-listing the apps.” He also said, “Google had agreed to cooperate. I had a conversation with google last night (Friday) when I first learnt of this. I have spoken to them 4-5 times today.
The Controversy Surrounding Google ‘s Payments Policy
Google initiated the delisting of apps belonging to 10 Indian developers due to non-compliance with its payments policy. This policy mandates that app developers pay a service fee ranging from 11% to 30% for all in-app purchases of digital goods and services. The policy has been a point of contention, affecting several prominent Indian apps.
The Impact on Indian Developers
Among the affected was Info Edge, with five of its apps, including Naukri.com, Naukri Recruiter, Naukrigulf, 99acres, and Shiksha, being removed from the Play Store. As a result of the government’s intervention and negotiations, three of these apps – Naukri.com, Naukrigulf, 99acres were swiftly re-listed by 3.30 pm on Saturday. However, the CEO of Shaadi.com, Anupam Mittal, raised concerns about the re-listing being a temporary solution, pointing out that the apps were back without in-app billing, which could potentially harm the consumer side of the business in the long run.
Sanjeev Bikhchandani, founder and executive vice chairperson of Info Edge, announced the return of their apps to the Play Store. This achievement was highlighted as a result of tireless effort and effective crisis management by the Info Edge team. Notably, apps such as Naukri.com, Naukrigulf, and 99acres were among those reinstated.
Google ‘s Payment Policy and Developer Options
The Google offers developers three options to comply with its payment policy:
Google Play Billing System: Developers can choose this option, which subjects them to a 15% to 30% service fee on revenues generated through in-app purchases.
Alternate Billing System: Developers can offer an alternative billing system alongside Google’s, providing users with a choice. This option still requires a service fee to Google, albeit at a reduced rate of 11% to 26%.
Consumption-Only Basis: This option allows developers to forego in-app billing entirely, avoiding service fees but potentially hindering the user experience due to the necessity of external payment processes.
Compliance and the Path Forward
The re-listing of Info Edge’s apps without in-app payment functionalities signifies compliance with Google’s policy through the consumption-only model. This decision, while ensuring the apps’ presence on the Play Store, raises questions about the impact on user experience and revenue generation.
The Bigger Picture
The issue extends beyond Info Edge, with other developers, including Matrimony.com and AltBalaji, still facing delisting. The ongoing situation underscores the tensions between global tech platforms and local developers over payment policies and market access.
Compliance with Google’s Payments Policy
To adhere to Google’s policy, developers presented with three options: adopting the Google Play Billing System, offering an alternate billing system alongside the GPBS, or operating on a “consumption-only” basis without in-app billing. Info Edge’s decision to comply by opting for the consumption-only model, thereby removing in-app payment options, was a strategic move to ensure their apps’ availability on the Play Store.
Conclusion
The recent developments signal a crucial dialogue between the Indian government and tech giants like Google. By focusing on the sustainability and growth of the Indian start-up ecosystem. While the re-listing of apps marks a temporary resolution, the upcoming meeting between Google, the affected developers, and the government is anticipated to address the broader implications of tech policies on India’s digital economy. This incident underscores the ongoing negotiation between global tech platforms and local regulatory frameworks, aiming for a balanced approach that supports innovation while ensuring fair practices.
