The Indian government stepped in to help solve a problem between Google and some Indian companies about how Google’s Play Store charges money. The IT Minister, Ashwini Vaishnaw, has called for a meeting with Google representatives on Monday to address the concerns raised by Indian startups.
Recently, Google removed apps from 10 Indian companies, including popular services like Bharat Matrimony and Naukri, citing disagreements over payment of service fees. This made Indian startups upset with Google because they don’t like the fees Google charges for in-app purchases.
Minister Vaishnaw is hopeful about fixing the problem quickly and looking out for Indian startups. He said it is important to protect the startup community and wants Google to deal with the problem fairly. The argument is mostly about Indian startups disagreeing with the fees Google wants to charge, which can be anywhere from 11% to 26% for in-app purchases. Google says these fees help with the growth of the Android system. However, Indian companies contest this imposition, leading to app removals.
Startups like Matrimony.com and Info Edge, the parent company of Naukri, expressed disappointment over the removal of their apps. The Matrimony.com founder thinks today is tough for India’s internet, fearing for matrimony services. Google said the companies had time to obey its rules, arguing that it is not fair for some developers to skip fees and insisting on their right to charge fees on their Play platform.
Both sides are sticking to their positions, so the meeting between Indian officials and Google on Monday will be really important to figure out what happens next.
