Google removes matrimony apps from Indian startups on play store over fee dispute

In a recent development, Google has removed matrimony apps from Indian startups including popular ones like Bharat Matrimony from its Play Store amid a dispute over service fee payments. The disagreement stems from Google's attempt to impose a fee ranging from 11% to 26% on in-app payments following an order from Indian antitrust authorities to dismantle its previous system which charged 15% to 30%.

The move by Google has raised concerns among Indian startup firms particularly those targeted in this action as they sought to resist the imposition of these fees. Despite their efforts, two court decisions in January and February including one from the Supreme Court, effectively allowed Google to either charge the fees or remove the apps.

Matrimony.com, the parent company of Bharat Matrimony, expressed dismay over the removal of its dating apps, including Bharat Matrimony, Christian Matrimony, Muslim Matrimony, and Jodii describing the incident as a "dark day for the Indian Internet." Alphabet Inc, Google's parent company issued notices of Play Store violations to Matrimony.com and Info Edge the operator of a similar app called Jeevansathi.

Shares of Matrimony.com and Info Edge experienced declines following the news with Matrimony.com falling as much as 2.7% and Info Edge dropping 1.5%. Info Edge founder Sanjeev Bikhchandani emphasized compliance with Google's policies and timely clearance of all pending invoices.

Google, in response explained in a blog post that 10 Indian companies had chosen not to pay for the "immense value they receive on Google Play" over an extended period. The company did not disclose the names of these firms but highlighted its right to charge fees, emphasizing that neither courts nor regulators had denied this right. The Supreme Court, in a decision on February 9 refused to interfere with Google's authority in this matter.

The removal of these apps by Google could potentially fuel discontent within the Indian startup community, which has long criticized the practices of the tech giant. Google, however, maintains its position, asserting that the fees support investments in the app store, the Android mobile operating system, and cover developer tools and analytic services. Only 3% of the more than 200,000 Indian developers on the Google Play platform are required to pay any service fee, according to the company.