Google Play Billing policy doesn't ensure fair play - Startups to move to CCI

Since Google put a temporary ban on Paytm for promoting online gambling, Paytm is not on good terms with the former. It is clearly visible in the way Vijay Shekhar Sharma talks and tweets about the company. In fact, Paytm launched its own app store to compete with the Play Store.

Google's dominance over the digital market is discouraging many startups. The tech-giant wants a monopoly of payments only through GPay and a 30% commission on all in-app purchases. This plan has, thus, made Indian Startup founders rally against the search engine major in the Indian Market. Although Google has consequently suspended this plan (for now), it will raise several issues in the Indian Digital Market.

Previously, Reuters had reported that the tech major was facing an antitrust case in India for allegedly abusing its dominant position in the Android smartTV market. It was creating barriers for companies that wanted to use or modify its android OS for their smart televisions. Now, Livemint has reported that a group of 120 founders has formed an association of sorts to talk about this abuse of dominance by Google.

Further, 15 of these founders are already in talks with CCI (Competition Commission of India) to help regulate its policies. Further, the report said that these founders are planning to send a written communication to MeitY as well. The startup ecosystem will send a single letter to both the government and the CCI.

The backlash in India is a matter of concern for the company since the 1.3 billion-strong nation had an untapped potential market. In 2018, CCI had already fined Google ₹136 crores for abusing its dominance in search.

What do the founders want?

The founders are protesting against the monopoly of Google for in-app purchases. The latter aims to allow payments only through Google Pay. Then, post the Paytm bans and notices to Zomato and Swiggy, the founders said that Google is going against Indian laws by disallowing real money gaming apps to list its PlayStore. Further, they have accused Google of heavy-handed removal of apps from its PlayStore for violations without proper notice.

The founders want a stay on the compulsory collection of the 30% commission on all in-app purchases. They also want the decoupling of Google's Play Store, Android operating system and payment systems while maintaining that India should build or support an indigenous "Atmanirbhar" app store to counter the search engine's dominance.