The Madras High Court has passed an interim injunction against Google over a plea filed by Matrimony.com, an online matchmaking platform. Matrimony.com claims that Google tried to make Google Play Billing System mandatory, gave the sole option for payments, and imposed a fee of 15% – 30% depending upon the annual revenue, which was quashed by the Indian competition watchdog. Google later rolled out an alternative billing system but with a service fee framework, which includes 15% for the first $1 million revenue earned by the developer each year, and 15% for automatically renewing subscription products purchased by subscribers, regardless of revenue earned by the developer each year, among others. Matrimony held that the present payment policy of Google, which is 11% – 26% fee on the revenue, will adversely impact the app developers and that the payment policy was in violation of the applicable law. The Alliance of Digital India Foundation (ADIF), an industry body for Indian startups, described the 11%-26% service fee structure as a “death knell for the Indian startup ecosystem”.
This tweet was made by Anupam Mittal, founder of Shaadi.com, in response to Google’s payment policy for Indian app developers. Mittal accused Google of disregarding orders from the Competition Commission of India (CCI) and Indian laws, and described the situation as “neo-colonialism at its worst.” He also expressed hope that the media, courts, and Prime Minister’s Office in India are taking note of the issue. In the past the likes of Vijay Shekhar Sharma have too criticized Google’s commission from the app developers. Recently, Shaadi.com founder and Shark Tank-famed Anupam Mittal took to Twitter to slam Google.
Indian entrepreneurs and startup founders have criticized Google’s commission from app developers. Vijay Shekhar Sharma, founder of Indian payment app Paytm, has been one of the most vocal critics, alleging that Google’s policies are anti-competitive and harm Indian startups. Anupam Mittal, founder of Shaadi.com, recently took to Twitter to criticize Google for mandating payments for Indian developers in disregard of Indian laws and orders from the Competition Commission of India. Other Indian startups have also raised concerns about the impact of Google’s commission structure on their businesses.