ETtech Explainer: Why are Indian startups up in arms against Google Billing?
Apps like Shaadi.com and BharatMatrimony.com were delisted by Google on Friday since they did not adhere to the tech giant’s billing policies. By Monday, these apps were restored on Google Play Store, but without their in-app payment options.
Elevate Your Tech Prowess with High-Value Skill Courses
Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitMITMIT Technology Leadership and InnovationVisitIndian School of BusinessISB Professional Certificate in Product ManagementVisitFounders of these apps say that Google is using its near monopoly in the app publishing business to coerce startups to pay exorbitant fees for their services.
But why is it that a bunch of startups are up in arms against Google’s billing policies? ET explains.
What is Google’s Billing Policy?
To be able to use Google Play Store's distribution, any app publisher who is selling services, digital content or goods to its users must use the app marketplace’s billing system to process those transactions. The policy is applicable for startups offering services like education, gaming, dating, matrimonial and such. If the app sells physical goods like ecommerce, or is a bill payment or banking app, they are exempt from mandatorily using Google Billing.
What is the problem here?
Think of the app store like a shopping mall and Google is the landlord who charges merchants selling services in the mall. While this seems like a legitimate demand, Indian startup founders impacted by the move have mostly criticised Google for
