Government attempts at mediation seem to have hit a roadblock, as Indian startups continue facing Google’s wrath for opposing its payment policies.
On Friday, Ministers Rajeev Chandrashekhar and Ashwini Vaishnaw heard grievances from firms complaining of unjust suspension from the Play Store. But the tech giant remained firm in its stance.
At the core of the conflict is Google’s 11-26% fee imposed on in-app transactions. This was after the antitrust watchdog CCI scrapped an earlier 15-30% commission model last year.
Startups allege the fee is excessive, and Google is exploiting its near-monopoly. They are calling for a revision according to global norms.
However, Google maintains the policy conforms to regulations. It says select suspensions were for violations like misleading claims.
As both sides dig in their heels, apps remain unavailable for users. The political uncertainty also threatens the growth of Indian innovators.
Unless a balanced solution is found, the tussle risks denting the government’s vision of a digital India. Close cooperation, not confrontation, is key to a pro-business ecosystem.
