Google Takes Action in India: Removes Matrimony Apps from Play Store Due to Fee Disagreement

Google has taken action by removing several apps from the Play Store in India, including well-known matrimony apps like BharatMatrimony, according to a report by news agency Reuters. This decision comes as a result of a disagreement over service fee payments, with Google insisting on collecting charges ranging from 11 per cent to 26 per cent on in-app transactions. 

The conflict stems from attempts by some Indian startups to push back against Google's fee structure after directives from the country's antitrust authorities to revise its earlier fee system, which charged between 15-30 per cent. Despite facing two court rulings in January and February, including an unfavorable decision from the Supreme Court for startups, 

Google has stood firm on its fee collection or app removal policies. Matrimony.com, the company behind Bharat Matrimony, confirmed the removal of its dating apps, calling it a "dark day for the Indian Internet." Murugavel Janakiraman, founder of Matrimony.com, expressed concern over the gradual elimination of their apps, stating, "Our apps are disappearing one by one." 

 Google has sent notices of Play Store violations to Indian companies such as Matrimony.com and Info Edge, which runs Jeevansathi. Executives from both companies mentioned in the report are currently evaluating the notices and considering their next steps. Following the news from Reuters, Matrimony.com's shares dropped by up to 27 per cent, while Info Edge saw a 15 per cent decline. Sanjeev Bikhchandani, the founder of Info Edge, stated that they have promptly paid all outstanding Google invoices and adhered to its policies. 

 In a previous blog post, Google disclosed that ten Indian companies had not followed their payment policies on Google Play. The removal of apps by Google could potentially generate dissatisfaction within the Indian startup community, which has been vocal about the company's practices for some time. Google, however, maintains its position, arguing that its fee structure is essential for supporting investments in the app store and the Android mobile operating system, emphasizing that only a small percentage of Indian developers on its platform are subject to service fees. 

Given Google's dominant presence in the Indian market, controlling 94 per cent of Android-based phones, the ongoing dispute highlights the complexities of the tech ecosystem and the obstacles faced by startups.