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The Monopoly Held By Google Must Be Broken: Founder-CEO Of Shaadi.com

By Consultants Review Team Monday, 04 March 2024

Anupam Mittal, the CEO of Shaadi.com, stated that the government must step in and create a central repository of applications in order to end Google's monopoly, amid a dispute between Google and domestic digital service providers over in-app service fees.

In an interview with FE, Mittal stated that anybody should be able to create a front end for any app, much like we have UPI (Unified Payments Interface) and ONDC (Open Network for Digital Commerce).

The Google app store, maps, or anything else cannot be included with the Android operating system. The user must select the service that he want to utilize. Mittal stated that this is how monopolies are prevented and that this cannot be accomplished in the absence of regulatory or governmental action.

Mittal's remarks are noteworthy because Google, through Android, controls over 95% of the operating system market. Moreover, the government's objective of maintaining Internet accessibility is being impacted by its dominance in the app market and the lack of alternatives.

In fact, Google was fined Rs 936.44 crore by the Competition Commission of India (CCI) in October 2022 for abusing its dominant position with regard to its Play Store policy. Google delisted ten firms' applications on Friday, alleging violations of its in-app charging policy. The problem is in the fact that Google takes a commission of 11-26% from the firms whenever a customer buys a good or service through one of their applications.

Following the event, a number of in-house businesses took aim at Google, claiming that the company's commission fees were excessive and that its billing structure was designed to collect unprofitable rent from in-house engineers. The issue has been brought up and will be resolved in a meeting with Google and app developers on Monday, according to Communications and IT Minister Ashwini Vaishnaw.

"They charge between 11 and 30 percent for payment services, which only cost one penny." It's really absurd," Mittal remarked, adding that while the businesses don't mind Google providing a payment gateway, it shouldn't be mandated and should have reasonable prices. applications that were delisted, including InfoEdge's Naukri, 99Acres, and Shiksha, reapplied as consumption-only applications rather than under the in-app paying category.

On Sunday, Google also reinstated applications that had reapplied under the in-app charging category, including Kuku FM, Stage, Altt, and Truly Madly. The delisting of several applications has alarmed the Internet and Mobile Association of India (IAMAI). Additionally, the group asked Google to reinstate the applications' original listing on the Play Store and return them to their original state.

Mittal commented, "Unless you unbundle Google (from mandatorily pre-installing apps in phones), you can't create an alternative app store," in reference to the possibility of other app markets like IndusApp Store.

Google and phone manufacturers now have a deal in place for Google to pre-install a selection of their applications on the phones. Even users are unable to remove the programs from their phones.

Just 3% of Indian developers, according to Google, offer digital products or services, necessitating the payment of a service charge. Most of these developers only pay a minimum of 15%. According to Google, fees over 15% apply to less than 60 developers on Google Play.

Google reports that 200,000 applications have met the requirements. Since 97% of the 200,000 applications are available for free, what kind of compliance is required? The handful that have consented are doing so out of necessity, according to Mittal.

Several in-house companies have filed challenges against the Play Store's billing policy in the Madras High Court and the Supreme Court, arguing that the charge is excessive, but they have not been granted a stay of proceedings. The 10 firms that have challenged this billing scheme are presently presenting their case before the Supreme Court.

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