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Friday, November 8, 2024

Google Play Store dispute continues; Startups stick to their stand on 26% fee for in-app purchases

Google announced that some Indian apps will no longer be available in the Play Store some days ago. The company’s recent announcement included a disagreement over the payment of service fees. On Tuesday, the business did, however, declare that it will temporarily reinstate all delisted apps from developers who have Supreme Court appeals pending. In order to address the issue, the government is meeting with Google and digital entrepreneurs when this decision is made. On Wednesday, however, startup founders declared that they would not back down from their opposition to the tech giant charging an 11–26% fee for in-app purchases.

This happens after a few startup entrepreneurs met with Union IT and Telecom Minister Ashwini Vaishnaw and State Minister for Electronics and IT, Rajeev Chandrasekhar, to talk about the problem. They claimed to have received backing from the government for their efforts.

BharatMatrimony CEO Murugavel Janakiraman thanked the ministers and stated in an IANS statement that “we continue to maintain our stand that 11 to 26 percent for payment gateway is unreasonable and selective for digital apps, while Google offers the same service for all digital companies.”

Google also delisted apps from companies like the social networking app FRND, the audio content platform Kuku FM, the dating apps Truly Madly and Quack Quack, and the streaming platforms Altt, Stage, and Aha.

Snehil Khanor, co-founder and CEO of TrulyMadly, stated that “Google charging up to 26 per cent of the app’s revenue, represents a significant financial burden for app developers.”

“We’re going to set up a forum with officials from Google and app creators. In the following 100–120 days, this platform will enable continued discussion with the goal of arriving at a conclusion,” he continued.

The founders informed reporters at the Alliance of Digital India Foundation (ADIF) conference that, on the second day following the delisting of their apps, their business experienced a 40 percent decline.

“The ambitious Digital India vision cannot be realized without the government’s unwavering backing for the startup ecosystem. We are certain that the government will continue to encourage digital startups as they develop and expand,” stated Prateek Jain, Associate Director, ADIF.

Jain added that they anticipate the ongoing case with the Competition Commission of India (CCI) to be expeditiously and favorably considered, as this will represent a major advancement for the digital economy.

Nitin Gohil
Nitin Gohil
A Mumbai-based tech professional with a passion for writing about his field: through his columns and blogs, he loves exploring and sharing insights on the latest trends, innovations, and challenges in technology, designing and integrating marketing communication strategies, client management, and analytics. His favourite quote is, "Let's dive into the fascinating world of tech together."

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