Google Removes Several Indian Apps from Play Store: Monopoly Concerns Spark Debates on Indian App Store
Google recently took action against several Indian apps and removed them from the Play Store, citing non-compliance with its Service Fees requirement. Among the apps affected were Kuku FM, Shaadi.com, BharatMatrimony, and Naukri. Kuku FM, a popular audio platform offering books and podcasts in seven languages, had accumulated over 10 million downloads on the Play Store and heavily relied on the platform for its subscription-based revenue model.
The vast control that Google possesses over the Android operating system enables the tech giant to impose a ‘Service Fee’ for in-app payments on the Play Store. This practice has raised concerns about potential monopoly practices and triggered criticism from companies impacted by Google’s policies. Consequently, the Competition Commission of India launched an investigation, resulting in a hefty ₹2,200 crore fine against Google. Despite the fine, Google continues to charge the fee, albeit at a reduced rate.
These recent developments have ignited discussions surrounding the necessity of establishing an Indian app store. The government has made efforts to promote Mobile Seva as a domestically developed platform aimed at promoting self-reliance. However, this alternative has not gained significant traction. PhonePe, a popular digital payments platform, has recently launched the Indus Appstore in an attempt to challenge Google’s dominance. The platform is waiving commission fees and only charging an annual listing fee, which will be waived until 2025, in order to attract developers. Additionally, PhonePe’s support for 12 languages could pose a significant threat to Google’s stronghold, particularly if the Indus Appstore can secure preinstallation on smartphones.
This development serves as a reminder of the ongoing tensions between global tech giants and regulatory bodies worldwide. It also highlights the challenges and opportunities for local ecosystems aiming to compete with or offer alternatives to established players like Google. The narrative surrounding these events demonstrates the evolving landscape of the digital market and the continuous quest for fair competition.
Analyst comment
Positive news for PhonePe’s launch of the Indus Appstore as it challenges Google’s dominance in the Indian app market. The waiving of commission fees and support for multiple languages could attract developers and pose a threat to Google. However, the success of establishing an Indian app store and achieving fair competition remains uncertain. Market impact: Potential market expansion for PhonePe and increased competition in the Indian app market.
