Google is contemplating the removal of applications from 10 Indian companies, including prominent matrimonial services BharatMatrimony and Jeevansathi, due to a conflict over unpaid service fees. This decision comes after a prolonged dispute regarding Google’s imposition of an 11% to 26% fee on in-app payments, a move contested by the startups. The controversy escalated following directives from antitrust authorities to Google, demanding the tech giant to revise its previous fee structure of 15% to 30%.
Recent court rulings in January and February, including one from the Supreme Court, have sided with Google, allowing the company to either enforce the fee or eliminate the apps from its Play Store. In response, Google has issued notices to several Indian startups, including Matrimony.com, the parent company of BharatMatrimony, and Info Edge, which operates Jeevansathi, signaling potential Play Store violations.
Executives from the affected companies are currently assessing the situation and contemplating their next steps. Matrimony.com’s founder, Murugavel Janakiraman, expressed concerns that the apps “could literally be deleted” as a result of Google’s actions. Following the announcement, Matrimony.com’s shares dropped by 2.7%, while Info Edge saw a 1.5% decrease.
Google maintains that its right to charge for app services has never been contested by courts or regulators, emphasizing a recent Supreme Court decision that upheld its fee imposition. The potential removal of these apps could further strain relations between Google and the Indian startup ecosystem, which has voiced opposition to the tech giant’s practices for years. Google’s dominant position in the Indian market, with a 94% share of Android-based phones, underscores the significant impact of its policies on local businesses.
Leave a Reply