In recent days, many startups in India have banded together to consider ways to challenge Google, including by lodging complaints with the government and courts. They are upset about the 30% commission fee and say several other Google Play Store policies hurt their businesses. And it looks like Google is finally listening.
Alphabet Inc's Google has extended the timeline for apps on alternative payment systems to comply with its play billing system to March 31, 2022, it said in a blog post on Monday. Google had deferred the enforcement of 30% commission on in-app purchases of digital goods from its Play Store in India to April 2022 in the face of mounting protests by Indian developers. Despite Google’s Play Store being the market leader across the world, it has always faced stiff competition from Apple and has been unable to make headway in China. Now it’s facing friction from the Indian startup ecosystem as well.
Why is this relevant for you, the MBA student?
Whether you’re interested in finance, marketing, or operations, the fight between Google and the Indian startups regarding Play Store policies is relevant for you. This dispute highlights business practices and throws light on how corporations can deal with and accommodate different systems in different geographies.
If you watched The Social Dilemma on Netflix, you’re probably aware of the large debate surrounding digital wellbeing, privacy, etc. In fact, the GDPR laws that came into effect in 2018-19 were created to protect users’ personal data. But the fact remains that when it comes to the digital world, a few players like Google, Apple, Xiaomi, Amazon, etc. hold all the cards. Even businesses have to fit into the systems and practices created by these players. In fact, not only play store, even when it comes to search engines, Google holds a monopoly. Like any new system that is launched by one or two pioneers, these corporations too have been the pioneers of creating the processes and best practices. But now, their partners are not happy. Indian startups and services have a bone to pick with how Google Play Store does not have their benefit at heart.
This friction highlights a maturing market and shows that the Indian digital space is moving towards a sort of liberalisation from these pioneers. There are talks of creating India’s own version of a Play Store. On the other hand, all of this really depends on the device manufacturers in a big way, because most phones in India today come equipped with 2 versions of the app or play store, and users can download a different play store if they desire as well!
Will the Make In India movement extend to this domain as well do you think, and will India eventually go the China route with a public controlled internet offering? Or will Indian startups and private companies take over? Or, do you think Google will come out on top? Take part in this poll here to tell us how do you think this game will play out and also share your opinions and thoughts in the comments section below.
Also Read: Pressure mounts on Google to soften its stance in India
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