India's Information Technology Minister Ashwini Vaishnaw has criticized Google's recent removal of several Indian apps from its app store, stating that such actions "cannot be permitted." Google's decision, made amid a dispute over service fee payments, led to the removal of popular apps like Bharat Matrimony and Naukri for not complying with in-app payment guidelines. Vaishnaw disclosed discussions with Google and plans to meet affected startups, emphasizing the need for their protection in India.
Google's stance on the removal remains undisclosed, while the move has drawn backlash from startups, many of whom have long contested Google's practices, including its in-app fees. Google asserts that these fees contribute to the development and promotion of the Android and Play Store ecosystem.
The disagreement revolves around Indian startups' efforts to resist Google's imposition of fees ranging from 11% to 26% on in-app payments, following directives from India's antitrust authorities. Despite court decisions in Google's favor, allowing the fee enforcement or app removal, affected companies express concerns over revenue loss and business sustainability.
Matrimony.com, notably impacted by the removals, faces significant repercussions with over 150 apps removed from the Play Store, potentially affecting revenue. Info Edge, another affected company, had its apps restored, but the exact extent remains unclear.
This incident recalls Google's temporary removal of Paytm, a popular Indian payments app, in 2020, which prompted the startup industry to challenge Google by launching alternative app stores and filing legal cases.
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