An alliance of only Indian technology companies being worked on after announcement of Google’s 30% commission rule

Google mandated that its charges from income from customers using in-app purchases for using Google Play Store to host an app will be 30%. Sharing almost one-third of income has come as a shock and a wakeup call to Indian entrepreneurs. Seeing backlash to the decision, Google has deferred the plan till April 2022.

Seems the storm has been postponed. Not really. This announcement by Google has ignited the push for an Indian-companies-only alliance. The driving force is that a behemoth based in USA may have monopolistic policies which are not for the good of all, but the profits of the company only.

Additionally, concerns are now being expressed about the dominance of Google’s Android system in India. Apple phones are expensive, with its least expensive product out of reach of many Indians. Android phones come is all price ranges. Consequently, Android has more than 95% of India’s market share.

Also Read: Paytm opens a mini app store for Indian developers

Indian company for sales service, Indiamart, expressed a certain pent-up desire for having a group in which there are no international companies. Founders of companies Paytm, GOQii, Indiamart and others were in the meeting. Later on, officials from Ministry of Information Technology were updated of the concerns of the industry, and the department is interested to look after their interests. 

One of the concerns is that large app stores should be regulated. They find an ombudsman satisfactory, which will be representing the concerns of smaller participants and can mediate issues. For example, this issue of Google’s 30% commission would be an ideal candidate for mediation.

 The Indian companies are open to all options. Another avenue being explored is taking the issue to Competition Commission of India or the courts.

 In a direct response to the matter, Paytm has gone ahead and launched a mini app store within its app. In-app payments from “app within app” will be using Paytm for processing payments. Decathlon, Ola, Park+, Rapido, Netmeds, 1mg, Domino’s Pizza are some of the companies that are already on the newly launched platform.