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Startups Seek CCI Intervention To Resolve Google’s Delisting Move

Startups Seek CCI Intervention To Resolve Google’s Delisting Move
SUMMARY

The CCI is looking into startups' accusations that Google is breaching a 2022 antitrust directive by penalising companies using alternative billing systems

In a letter to the CCI on March 1, the ADIF said that Google's removal of apps was a "brazen move," and urged the regulator to ask the company to reverse its decision

The removal of apps has drawn criticism from Indian companies, many of which have long been in conflict with Google and criticised its practices

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After Google’s whip on some prominent Indian apps, a group representing startups has approached the Competition Commission of India (CCI) to force the tech giant to reinstate the apps it removed over policy reasons.

The request, revealed in a letter seen by Reuters, marks an escalation in the confrontation with the US giant in a crucial market.

The commission has been looking into startups’ complaints that Google is not complying with a 2022 antitrust directive that prevents it from taking adverse measures against companies that use alternate billing systems.

However, Google denies any wrongdoing.

In a letter to the CCI on March 1, the Alliance of Digital India Foundation (ADIF) said that Google’s removal of apps was a “brazen move,” and anti-competitive, and urged the regulator to ask the company to reverse its decision.

ADIF mentioned in the letter that Google’s action would cause “irreparable harm to the entire market.” Google declined to comment, and ADIF and CCI did not immediately respond to requests for comment to Reuters.

Last week, Google removed over 100 Indian apps including 10 popular apps, such as Bharat Matrimony, Shaadi.com, Kuku FM and Naukri, from its Play Store and warned several others about possible actions for failing to comply with its billing policies.

Shortly after Google removed several apps from its Play Store, the tech giant reinstated some of them on Saturday, March 2. This included apps such as Shaadi.com and five of Info Edge’s businesses: Naukri, Naukri Recruiter, Naukrigulf Job Search App, 99acres, and Shiksha.

The removal of apps has drawn criticism from Indian companies, many of which have long been in conflict with Google and criticised its practices.

Google claims compliance, stating its in-app fee supports the development of the Android and Play Store ecosystem. The dispute stems from Indian startups’ attempts to resist Google’s imposition of a fee ranging from 11% to 26% on in-app payments, following orders from the country’s antitrust authorities to refrain from enforcing an earlier fee of 15% to 30%.

IT and Telecom Minister Ashwini Vaishnaw on Saturday (March 2) said that such delisting cannot be permitted.

“The government takes a strong view of Google delisting some apps from the Play Store. We will not allow delisting of apps,” said Vaishnaw.

Meanwhile, on Monday, startup executives met with India’s Deputy IT Minister Rajeev Chandrasekhar, expressing concerns over the app removal.

Chandrasekhar stated that his ministry would write to Google to ensure the reinstatement of the apps. Later, he mentioned on X that he would address the matter with Google to find a sustainable and long-term solution.

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Inc42 Daily Brief

Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy

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