On March 1, Google shook the Android app market by removing nearly a dozen firms’ apps from its platform. This move followed years of legal battles between Google and Indian companies, with disputes taken to both the Madras High Court and the Supreme Court. Despite intervention from the Ministry of Electronics and Information Technology, the apps were reinstated on Monday, yet the underlying issue persists.
The core of the problem lies in Google’s platform fees. For transactions involving digital services like ebook purchases or OTT streaming subscriptions, Google charges a fee ranging from 11% to 30%. This fee supposedly supports Google Play and the development of the Android ecosystem. However, many Indian developers, including big names like Bharat Matrimony and Disney+ Hotstar, view these fees as excessive. Some have even resorted to legal action to avoid them altogether.
Apple, on the other hand, faces less resistance in India due to its lower market penetration. However, both Apple and Google encounter global opposition to their fees. Spotify’s complaint to the European Commission against Apple and Epic Games’ lawsuit against both Apple and Google highlight the international scrutiny surrounding these fees.
While Google allows third-party app stores, Google Play remains the default option for most Android users. Regulators, including the Competition Commission of India, have taken steps to address these concerns. However, comprehensive regulatory frameworks are needed to foster competition in the app store market and alleviate developers’ grievances.
