Google Removes Popular Indian App Kuku FM from Play Store, Sparks Controversy
Google recently caused a stir in the Indian app market by removing several apps, including the popular audio platform Kuku FM, from its Play Store. The move has raised concerns among app developers and sparked a debate over Google’s dominance in app distribution.
Kuku FM, which offers a wide range of books and podcasts in multiple languages, excluding music, has amassed over 10 million downloads on the Google Play Store. Out of these, approximately 1.1 million have converted into paying subscribers, contributing significantly to the company’s revenue through annual subscriptions.
The main issue at hand lies in Google’s control over the Android operating system, which powers a staggering 95% of smartphones in India. This dominance gives Google the power to enforce the pre-installation of its suite of apps, including the Play Store, on Android devices, effectively establishing a near-monopoly in app distribution. Critics argue that this position allows Google to impose a hefty 30% commission on in-app payments and insist on the use of its billing system, leading to accusations of monopolistic behavior.
The situation escalated when the Competition Commission of India slapped Google with a ₹2,200 crore fine, accusing the tech giant of stifling competition and ensuring the prominence of its Play Store on Android devices. Despite the penalty, Google continued to charge a reduced “service fee.”
The tensions reached their peak on March 1st when Google removed ten Indian apps, including Kuku FM, Shaadi.com, and BharatMatrimony, citing non-compliance with its service fees. This triggered an immediate backlash from the affected companies and calls for government intervention to protect the Indian startup ecosystem.
In response to the growing demand for alternative app distribution platforms, PhonePe stepped up and launched the Indus Appstore, positioning itself as a commission-free alternative with only an annual listing fee. To incentivize adoption, PhonePe has decided to waive the listing fee until 2025. However, the success of the Indus Appstore hinges on changing user habits and convincing smartphone manufacturers to pre-install it on their devices.
The future outcome of this contentious situation remains uncertain. It could lead to a compromise between Google and the affected companies or prompt government regulations to create a more level playing field. As the industry watches closely, the fate of Kuku FM and other affected apps hangs in the balance.
Disclaimer: This article is based on publicly available information and the writer’s interpretation of the situation. It does not constitute legal or financial advice.
Analyst comment
Neutral news
As an analyst, the removal of Kuku FM and other Indian apps from the Google Play Store has sparked controversy and raised concerns about Google’s dominance in app distribution. The future outcome of this situation is uncertain and could result in a compromise between Google and the affected companies or government regulations to create a more level playing field. The fate of Kuku FM and other affected apps remains uncertain.
