Issue of delisting of India Companies from Googles play store

Source-This post on Issue of delisting of India Companies from Googles play store has been created based on the articles “Competitive ecosystem” and why did Google delist some Indian apps from Play Store?   published in “Business Standards” and “The Hindu” respectively on 6 March 2024.

UPSC Syllabus–GS Paper 2- Statutory, Regulatory and various Quasi-judicial Bodies

News-The article discusses the issue associated with the monopoly of tech giants like Google and Apple on app-based businesses.

Background– Google had recently announced that it was pulling the apps of almost a dozen firms out of its marketplace for Android apps. Issue of delisting of India Companies from Googles play store

What is the platform fee of Google?

Google collects a fee of anywhere between 11 to 30% for all in-app purchases that involve a purely digital service such as an ebook purchase or an OTT streaming subscription transaction.

Services provided: An app listed in the store is guaranteed to be highly visible. The apps also go through vetting processes where users may be certain that the app is not harmful.

Read more- Protecting competition – on CCI penalty on Google

What are the problems associated with the dominance of Google in the play store business?

1) Unreasonably high fees – App based businesses like Bharat Matrimony and Disney+ Hotstar have approached the courts at different stages due to high fees demand of Google.The fee can be in between 11 to 30% for all in-app purchases.

2) Restrictive services -Both companies have deployed restrictive terms of service that make it hard for app developers (including large companies) to sell apps by sideloading (from outside Google Play or Apple store). The Supreme Court of India and the European Commission have questioned these monopolistic tendencies.

3) Monopolistic tendencies– Apple and google occupy close to 99 per cent of the mobile ecosystem between them. With such dominance, these companies have large market powers which can endanger smaller businesses, thus there is a need for robust regulatory framework.

What should be the way forward?

1) End Monopoly–

A) There is a need to increase competition in the app store market.

B) There should be restrictions on arrangements that Google makes with phone manufactures to set defaults and give primacy to its own apps.

2) Robust regulatory framework– India needs to evolve a policy that allows free competition and curb monopolistic tendencies.

Question for practice

What are the issues associated with monopolistic tendencies of tech giants. How does it impact digital economy of India and around the world?