Google’s Crackdown: Enforcement on 10 Indian App Developers for Play Store Fee Non-Payment

In a recent announcement on March 1, Google declared its intention to take firm action against a cohort of Indian app developers for their non-compliance with Play Store billing policies. The technology behemoth, under the Alphabet umbrella, underscored that ten Indian app developers, including some well-established entities, had failed to fulfill their obligations regarding Play Store fees, potentially facing expulsion from the Android app marketplace as a consequence. Emphasizing equitable treatment, Google reiterated its commitment to upholding uniform standards across its developer ecosystem, ensuring parity for those who dutifully fulfill their financial obligations.

The imbroglio surrounding Google’s Play Store billing policies gained further traction as a group of Indian companies took legal recourse, challenging the perceived exorbitant fees imposed by the tech giant. Citing concerns over the steep service charges ranging from 11 percent to 26 percent per app download and in-app purchases, the companies petitioned the Madras High Court, seeking redressal. Among the petitioners are prominent entities such as Bharat Matrimony, Shaadi.com, Unacademy, Kuku FM, and Info Edge, among others. Despite the dismissal of the appeal by the High Court, the saga escalated to the national level, with the Supreme Court of India agreeing to hear the pleas lodged by the aggrieved firms. However, the Supreme Court refrained from issuing any interim directives to Google, thus leaving the fate of the apps subject to the ongoing legal proceedings.

As the legal battle unfolds, the intersection of technological innovation and regulatory scrutiny continues to shape the landscape of digital commerce in India. The outcome of this standoff between Google and Indian app developers not only holds implications for the app economy but also underscores the broader debates surrounding fair competition and consumer protection in the digital era. With stakeholders closely monitoring developments, the resolution of this dispute is poised to set precedents that could reverberate across global tech ecosystems, reshaping the contours of digital governance and corporate responsibility in the process.

Later, the group of app developers wrote to Google requesting it to not delist the apps till March 19, when the Special Leave Petition (SPL) would be heard by the Supreme Court, reported The Economic Times. However, it now appears that Google has decided not to listen to the pleas and instead begin taking action against the non-paying developers.

In a post, Google acknowledged the Supreme Court’s decision to not request the tech giant to keep the apps on the platform. It stated, “For years, no court or regulator has denied Google Play’s right to charge for the value and services we provide. On 9 February, the Supreme Court also refused to interfere with our right to do so. While some of the developers that were refused interim protection have started fairly participating in our business model and ecosystem, others choose to find ways to not do so.” Additionally, it stated that only 60 developers in India were charged a fee above 15 percent.

Further, the Android platform developer highlighted that not taking action would be unfair to more than 2 lakh Indian developers who have been complying with its billing policy. “After giving these developers more than three years to prepare, including three weeks after the Supreme Court’s order, we are taking necessary steps to ensure our policies are applied consistently across the ecosystem, as we do for any form of policy violation globally,” Google added.

Removal from the platform is not the end, however. Google stated that developers can resubmit their apps to be listed on the Play Store by adhering to the payment policy, and likely clearing their dues. Alternatively, a favourable decision by the Supreme Court after March 19 could result in Google being ordered to revise its billing policy.