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Govt stands firm against Google's app delisting; Min Vaishnaw asserts protection for Indian startups

Minister Vaishnaw emphasised the crucial role of the startup ecosystem in the Indian economy and expressed the government's commitment to protecting them from the whims of "any big tech." 

- New Delhi - UPDATED: March 2, 2024, 06:22 PM - 2 min read

Communications Minister and Electronics & Information Technology Minister Ashwini Vaishnaw

Govt stands firm against Google's app delisting; Min Vaishnaw asserts protection for Indian startups

Communications and Electronics & Information Technology Minister Ashwini Vaishnaw.


The Indian government has intervened in the ongoing dispute between Google and several Indian startups, following the removal of popular apps from the Play Store. 

 

IT and Telecom Minister Ashwini Vaishnaw has asserted that "delisting of Indian apps cannot be permitted" and has called for a meeting between Google and representatives of the affected startups next week.

 

This development comes amid strong reactions from startups and industry bodies against Google's decision to delist their apps over a service fee dispute. 

 

The companies in question argue that Google's fee structure, ranging from 11% to 26% on in-app purchases, stifles innovation and unfairly advantages the tech giant.

 

Minister Vaishnaw emphasised the crucial role of the startup ecosystem in the Indian economy and expressed the government's commitment to protecting them from the whims of "any big tech." 

 

He highlighted the impressive growth of the Indian startup scene, with over 1 lakh startups and 100 unicorns emerging in the last decade, and stressed the need to nurture this entrepreneurial energy.

 

Meanwhile, Minister of State for IT Rajeev Chandrasekhar raised concerns about Google's dominant position in the app ecosystem, potentially hindering competition and harming startups. 

 

He indicated that the government would examine whether Google's actions fall under the category of "abuse and misuse of dominance."

 

The dispute stems from the Competition Commission of India's (CCI) order to Google to dismantle its earlier billing system, which charged developers 15% to 30% on in-app purchases. 

 

Google, however, implemented a new fee structure, leading to the current standoff with several Indian startups.

 

The removal of apps like Shaadi, Matrimony.com, and Bharat Matrimony, along with others, has sparked outrage and calls for alternatives. 

 

While Info Edge, parent company of Naukri.com and 99acres.com, initially faced app removals but later managed to restore some, the issue remains unresolved.

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