Shark Tank judge Anupam Mittal criticized Apple and Google app store rules. Speaking to Business Insider, Shaadi.com founder Mittal compared the companies to the East India Company.
He stated the two firms control the app world and “act without limits.” Mittal said what option companies have but to accept unfair practices. Now, transactions through apps from their stores pay 15-30% tax/fees. This means startups give 50% of their revenue to the companies. It is the new East India Company that acts arrogantly and without limits. The issue is getting the companies to follow the rules. Mittal said their strategy is stretching out the legal process to tire the system.
Mittal accused the tech giants of attempting to become “the gateway to our economy” through such actions. He said while the government wants good rules, legal processing takes a long.
He added,
As a government, we must ensure nobody becomes the economy’s gateway, which is what these businesses try to do. Rules should include penalties for anyone who misuses or manipulates law while violating its intended purpose.
Mittal also believes tough action is needed against these firms, who he called “bullies”. This cannot only involve fines.
Rules should penalize anyone manipulating or misusing law while violating its purpose. Ignoring court orders is contempt of court, so there is a way to send a strong message. These bullies require one arm chopped off in penalties, a slap on wrists will not work as they are too big to care about a couple hundred million in fines.
