Google's App Exodus: Apps Like Bharat Matrimony And Naukri Removed From Play Store Amid Fee Dispute

In an escalation of the ongoing battle between Google and Indian startups, the tech giant initiated the removal of apps belonging to 10 companies in India on Friday. Among the casualties were popular matrimony apps like Bharat Matrimony and the widely-used job search app Naukri, owned by Matrimony.com and Info Edge respectively.

This move comes as the latest development in a long-standing feud between Indian startups and Google, with the former protesting against the US tech giant's practices, particularly its in-app fee charges. Google asserts that these fees are essential for the development and promotion of the Android and Play Store app ecosystem.

Matrimony.com's founder, Murugavel Janakiraman, expressed his dismay, calling it a "dark day for India's internet." The removal of matchmaking apps, including Bharat Matrimony, Christian Matrimony, Muslim Matrimony, and Jodii, from the Play Store raises concerns about the future of matrimony services in the country. Bharat Matrimony alone boasts over 50 million downloads, highlighting the potential impact on millions of users.

Google sent notices of Play Store violations to Matrimony.com and Info Edge on Friday. In response, Matrimony.com shares experienced a momentary dip of 2.7%, eventually closing up 2.2%. Similarly, Info Edge faced a 1.5% drop before recovering some losses.

The crux of the dispute revolves around Indian startups' efforts to resist Google's imposition of a fee ranging from 11% to 26% on in-app payments. This follows an order from the country's antitrust authorities, directing Google to dismantle its earlier system charging 15% to 30%. However, Google gained apparent approval to enforce the fee or remove apps through court decisions in January and February, including one by the Supreme Court.

Sanjeev Bikhchandani, the founder of Info Edge, asserted compliance with Google's policies, stating that all pending invoices had been cleared in a timely manner. In contrast, Google contended that 10 Indian companies had chosen not to pay for the "immense value they receive on Google Play" for an extended period.

Google, a subsidiary of Alphabet Inc, defended its position in a blog post, emphasizing that no court or regulator had denied Google Play's right to charge fees. The company argued against allowing some developers to receive differential treatment, asserting that it creates an uneven playing field. It revealed that only 3% of the 2,00,000 Indian developers on the Google Play platform are required to pay any service fee.

Google's dominance in the Indian market is evident, with 94% of phones operating on its Android platform. This latest move echoes a similar incident in 2020 when Google temporarily removed the popular Indian payments app, Paytm, from its Play Store, citing policy violations. The aftermath saw Paytm's founder and the wider startup industry uniting to challenge Google by launching their own app stores and filing legal cases.

*Inputs From Reuters*