We continue to maintain our stand on Google charging up to 26% fee: Startup founders

After the government's intervention, Google has reinstated all the delisted apps of Indian developers, but startup founders on Wednesday said that they will continue to oppose the tech giant imposing a fee of 11 to 26 per cent on in-app payments.

Last week, Google delisted some of the apps by major Indian digital companies, including Matrimony.com, Naukri.com, Shaadi.com, and others from the Play Store.

Some startup founders then met Union IT and Telecom Minister Ashwini Vaishnaw and Minister of State for Electronics and IT, Rajeev Chandrasekhar to discuss the issue, and said that the government had assured them support.

Thanking the ministers, BharatMatrimony CEO Murugavel Janakiraman, in a statement to IANS, said: "We continue to maintain our stand that 11 to 26 per cent for payment gateway is unreasonable and selective for digital apps, while Google offers the same service for all digital companies."

Applications from companies like Altt, Stage, and Aha streaming platforms, Truly Madly and Quack Quack dating apps, Kuku FM audio content platform, and FRND social networking app were also delisted by Google.

"Google charging up to 26 per cent of the app's revenue, represents a significant financial burden for app developers," Co-Founder & CEO of TrulyMadly, Snehil Khanor, said.

"We will establish a forum comprising app developers and Google representatives. This forum will facilitate ongoing dialogue aimed at reaching a resolution within the next 100-120 days," he added.

During the ADIF (Alliance of Digital India Foundation) conference, the founders told reporters that their business dropped by around 40 per cent on the second day after their apps were delisted.

"The government has consistently demonstrated its support for the startup ecosystem, which is pivotal for realising the ambitious Digital India vision. As digital startups continue to innovate and drive growth, we trust that the government's support will be steadfast," said Prateek Jain, Associate Director, ADIF.

Jain also said that they are hopeful for a swift and favourable consideration of the pending case with the CCI (Competition Commission of India), which will be a significant step forward for the digital economy.