Union Minister Ashwini Vaishnaw on Google vs Indian apps battle: Startup ecosystem must be protected

Union Minister Ashwini Vaishnaw played a crucial role in bringing about a truce of sorts between Google and Indian app developers, after the big tech company delisted several Indian apps for non-compliance with its billing policies. In a recent interview with Moneycontrol, Vaishnaw answered questions about a permanent solution and whether the upcoming digital competition law will help.

The IT minister said, "Ultimately, the startup ecosystem and the people who have created so much value in our society, in our economy, in our people's lives, creating such innovative solutions, they must be protected. They have to be supported. So, I'm glad that Google has agreed on our request. And both sides are now meeting regularly."

He added, "We created a forum in which both the startups and Google can interact and come up with suggestions. I was told that they'll require about seven, eight weeks to come up with a common solution. Once they arrive at a common solution, we'll have a discussion jointly and then come up with the next steps."

Read More: Google's 'attack' on Indian apps; dark days, say stakeholders, questioning Google's 'inferior terms' for Indian developers

Google vs Indian apps flare up: 'Dark days', say stakeholders

On March 1, Google announced it would remove apps from 10 Indian developers, including Shaadi.com, Naukri.com, jeevansathi.com, and Bharat Matrimony, from its Play Store in India for non-compliance with its billing policies. The delisting action prompted immediate backlash from Indian internet frms who were caught off guard by the severity of the move.

Leaders like Sanjeev Bikhchandani called for the establishment of India's own app store as a part of its ‘Digital Public Infrastructure’ after Google's action against 10 companies in India.

The Info Edge founder wrote on X tagging government representatives, “...what India needs is an App Store / Play Store that is a part of Digital Public Infrastructure - like UPI and ONDC. The response needs to be strategic @PiyushGoyal @PiyushGoyalOffc."

Following government intervention and a meeting with IT minister Ashwini Vaishnaw and representatives of Indian internet firms, Google "temporarily" reinstated the apps and said it will allow them to offer in-app payments while extending the timeline to pay the service fee it charges developers.

“In the spirit of cooperation, we are temporarily reinstating the apps of the developers with appeals pending in the Supreme Court,” Google said in a statement, adding that it maintains its right to implement and enforce its business model. The US tech major added, “We will invoice our full applicable services fees in the interim and are extending payment timelines for these companies. We look forward to a collaborative effort to find solutions that respect the needs of all parties."

While several of the apps were reinstated, Indian startups believe they face unfair treatment and inferior terms compared to global counterparts.

Over a year since India's antitrust ruling against Google (Oct 2022), app developers continue to fight for fair treatment in the Indian app market. Certain stakeholders have gone as far as to call Google's delisting action an 'attack'.

Read More: Anupam Mittal asks, "Is Google evil?", as the battle between Google and Indian app developers rages on

“Today is a dark day for India Internet,” founder and CEO of People Group and Shaadi.com, Anupam Mittal said as he came out hitting hard against Google’s action of delisting Indian apps.

Mittal wrote on X, “Google has delisted major apps from its app store even though legal hearings are underway @CCI_India & @indSupremeCourt Their false narratives & audacity show they have little regard for India. Make no mistake - this is the new Digital East India Co and this #Lagaan must be stopped! Pls RT and #SaveOurStartups”

Murugavel Janakiraman founder and CEO of matrimony.com said, “Many companies across the have recently challenged Google's dominance in the app market. Google Play Store's control and its billing system are seen as anti-competitive. The Competition Commission of India (CCI) fined Google for these practices and ordered them to change their policies. However, concerns remain that Google hasn't fully complied.”