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

A need has been felt from a long time for the Indian companies to have a clout when conflicts of interest arise with big US companies
An alliance of only Indian technology companies being worked on after announcement of Google’s 30% commission rule
An alliance of only Indian technology companies being worked on after announcement of Google’s 30% commission rule
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Google mandated that its charges from income from customers usingin-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 toIndian entrepreneurs. Seeing backlash to the decision, Google has deferred theplan till April 2022.

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

Additionally, concerns are now being expressed about thedominance of Google’s Android system in India. Apple phones are expensive, withits least expensive product out of reach of many Indians. Android phones comeis all price ranges. Consequently, Android has more than 95% of India’s marketshare.

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

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

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

 In a direct response to the matter, Paytm has gone ahead andlaunched 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 newlylaunched platform.

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