Google app removal: Indian startups reach antitrust watchdog's doorstep against 'brazen move'

Antitrust complaint Google: Indian startups have taken their battle against Google's app removal to the Competition Commission of India (CCI), urging the regulator to intervene and compel Alphabet Inc's Google to restore the apps it recently removed, news agency Reuters reported. The move comes as tensions escalate between Indian startups and the US tech giant in a critical market.

Last Friday, Google removed over 100 Indian apps, including popular ones developed by Matrimony.com, citing violations of its policy that requires payment of a service fee when in-app payment options other than Google's are utilised.

In response, the startups have turned to the country's antitrust watchdog to address their grievances. The CCI has been investigating complaints from startups that Google is flouting a 2022 antitrust directive, which prohibits the tech giant from taking punitive actions against companies using alternative billing systems. Google, however, refutes any allegations of misconduct.

In a letter dated March 1 addressed to the CCI, the Alliance of Digital India Foundation (ADIF) condemned Google's actions as a "brazen move," accusing the company of engaging in anti-competitive behavior. ADIF urged the regulator to compel Google to reverse its decision, asserting that Google's actions would inflict "irreparable harm to the entire market."

Neither Google nor ADIF and the CCI offered immediate comments regarding the matter.

The removal of these apps has triggered backlash from Indian companies, many of which have long been at odds with Google and have criticised its business practices. Google maintains that its in-app fee structure is essential for the development and promotion of the Android and Play Store ecosystem.

At the heart of the dispute is the resistance by some Indian startups against Google's imposition of fees ranging from 11 per cent to 26 per cent on in-app payments, despite directives from India's antitrust authorities to refrain from enforcing earlier fees ranging from 15 per cent to 30 per cent.

IT minister Ashwini Vaishnaw voiced his opposition to Google's app removal, stating that such actions "cannot be permitted."

Executives from startups met with Union Minister Rajeev Chandrasekhar on Monday, during which Chandrasekhar expressed concern over the app removals. He assured the executives that the ministry would communicate with Google to ensure the apps are reinstated, according to the Reuters report.

Chandrasekhar later announced his intention to address the issue with Google to find a "sustainable and long-term solution" via a post on social media platform X.