Is Google Evil for Removing Indian Apps from Playstore?

Google sparked quite the uproar in India last Friday by yanking the cords on apps, including heavyweights like Bharat Matrimony and Naukri. What's the beef? Well, it all boils down to a dispute over service fee payments between these companies and Google.
Indian startups have long been grumbling about Google's practices, especially its in-app fees. Google argues that these fees are essential for nurturing and promoting the Android and Play Store app ecosystem.

“Google is the most evil company for businesses…Today they have delisted us again…This will completely destroy our business and make Kuku FM [unaffordable] for the majority of the country, but when [has] a monopoly cared about anything beyond itself.” said, Lalchand Bisu, CEO of Kuku FM which was also affected by Google’s move.

But after some pushback from the Indian government and local startups, Google had a change of heart. They announced on Tuesday that they'll be restoring the Indian apps they booted earlier, at least until the Supreme Court takes a look at their appeals.

So, what set off this showdown? A quick recap: Google gave notice to a bunch of Indian companies, including Matrimony.com and Info Edge (the folks behind Jeevansathi.com and Naukri.com), for not playing by their payment rules on the Play Store. Google insists on snagging a cut of the cash these apps make on their platform, anywhere from 11% to a whopping 30%.

Now, this isn't the first round in the ring for Google and Indian startups. A few years back, some startups threw a punch at Google by filing a complaint with India’s antitrust watchdog, the CCI. The CCI ended up slapping Google with a hefty fine of nearly ₹936 crore for its monopolistic behavior. But even with the fine, Google stuck to its guns and continued to demand its slice of the pie from app developers.

Fast forward to today, and we're still stuck in the same ring. Google's billing policy is a hot potato, with many Indian developers feeling the heat. Google argues that its charges cover more than just processing payments; it's like paying rent in a shopping mall—except this mall is global, with apps available in 160 countries.

“After giving these developers more than three years to prepare, including three weeks after the Supreme Court’s order, we are taking necessary steps to ensure our policies are applied consistently across the ecosystem, as we do for any form of policy violation globally,” Google said in a blog post.

“Allowing this small group of developers to get differential treatment from the vast majority of developers who are paying their fair share creates an uneven playing field across the ecosystem and puts all other apps and games at a competitive disadvantage,” Google said.

“Indian companies will comply - for now. But what India needs is an App Store / Play Store that is a part of Digital Public Infrastructure - like UPI and ONDC.” wrote

Info Edge India founder and vice-chairman Sanjeev Bikhchandani on X.

Behind this dispute lie critical data points. Google's Android OS dominates India's smartphone market, commanding a staggering 97% share. This dominance leaves little room for developers to maneuver. While theoretically, developers have the option to conduct transactions outside the Play Store or explore alternative platforms, they are hesitant to forfeit the vast distribution network provided by Google.

In essence, this confrontation centers around percentages—what constitutes fair compensation and who holds the authority to determine it. Until a resolution or intervention occurs, this ongoing saga between Google and Indian startups will likely persist, casting a shadow over the tech landscape.