Amid a heated dispute over service fee payments, Google India is considering the removal of apps from ten prominent Indian companies, including well-known matrimony services, a move that could strain ties with startups.
The conflict revolves around objections from startups regarding Google’s imposition of service charges on in-app purchases in India, ranging from 11 to 26 percent. This disagreement stems from antitrust authorities’ directives to Google to dismantle its previous fee structure, which ranged from 15 to 30 percent.
Sources suggest that Google has notified Matrimony.com and Info Edge, among others, about potential Play Store violations, with the dispute centering on the payment of service fees. The companies behind the BharatMatrimony app and Jeevansathi, such as Matrimony.com, along with Info Edge, are currently reviewing the notifications.
The impact of this news was reflected in the stock market, with shares of Info Edge and Matrimony.com experiencing a temporary decline, followed by a subsequent rebound. Both companies are carefully evaluating the notifications, and their executives stated they would decide on their course of action.
In a blog post, Google emphasized its entitlement to charge fees, citing the Supreme Court’s ruling on February 9, which upheld its right to impose fees or remove apps. The company asserts that the fees cover developer tools, analytic services, and investments in the Android OS and app store.
The potential removal of apps from the Google Play platform raises concerns within the Indian startup community, given that 94 percent of phones in the country operate on the Android platform. Google maintains that the fees it charges serve to support the Android ecosystem.
