Delisted Indian Apps Have “Not” Been Reinstated by Google: Vinay Singhal, Cofounder and CEO, STAGE

In a scenario reminiscent of "David vs Goliath," the Indian app ecosystem finds itself in a struggle against Google. Google has delisted numerous apps from its Play Store, citing non-compliance and non-payment of platform fees as reasons. The tech giant's official blog stated, "Today, we have over 200,000 Indian developers using Google Play who adhere to our policies, helping us ensure we have a safe platform; however, for an extended period of time, 10 companies, including many well-established ones, have chosen not to pay for the immense value they receive on Google Play by securing interim protections from the court."

Vinay Singhal, the Cofounder and CEO of STAGE, an Indian OTT platform, vehemently opposed Google's claims while advocating for fair competition and regulatory oversight in the face of corporate dominance. Singhal spoke to Dataquest about the current clash reverberating throughout the Indian app ecosystem. He minced no words, clarifying that all developers, including those from his company, had diligently paid invoices mandated by the court.

"All of us are currently in court. We've taken the matter to the Supreme Court and PCI as well. Despite the ongoing legal proceedings, Google has taken action. The honorable judges of the Supreme Court and PCI are still deliberating on the matter. Therefore, Google's claim is plainly false, yet they have the audacity to issue a press release about it," said Singhal, highlighting Google's actions as a direct disrespect to the authority of the judiciary.

“Google Taking Advantage of Its Monopoly”

The crux of Vinay's argument lay in Google's monopoly over the Indian mobile market, particularly its dominance through the Play Store. “Google holds a staggering 96% market share on mobile phones in India, effectively making them a monopoly. One doesn't need a science or economics degree to understand that the market share constitutes a monopoly in any industry. Furthermore, on the Android platform, Google enjoys 100% dominance of the Play Store. Google doesn't allow any other Play Store to operate. If one attempts to download an APK file, they'll likely encounter numerous warnings, almost as if their phone is at risk of exploding without the Play Store. Consequently, developers have no choice but to distribute their apps through Google Play, creating a monopoly that begs for regulation,” he said on Google taking unfair advantage of its monopoly in the market.

Vinay highlighted Google's own non-compliance, referencing a direct order from the Competition Commission of India (CCI) to refrain from restricting developers' use of third-party billing systems. Despite this order, Google delisted apps that utilized alternative payment gateways, demonstrating a brazen disregard for regulatory directives. “Currently, Google operates without regulation. Yet, they've imposed a 30% charge on digital goods sellers, essentially penalizing them for using their platform. This raises questions of fairness and compliance. We would adhere to such regulations if mandated by the court or regulatory bodies like the CCI. Until then, we cannot be deemed non-compliant,” he added.

Indian Apps Have not been Reinstated As Being Claimed by Reports

Singhal clarified that contrary to reports, the apps have not been reinstated or restored. “No app has been reinstated or restored. Only those apps that chose one of the options provided by Google have been reinstated. Google presented three options to us. Firstly, the GDPS, their original Google billing payment system, which is notoriously difficult to use. The second option is called user choice billing, where developers can utilize a third-party payment gateway alongside Google's, but they must integrate it through Google's API, sharing all data and granting audit rights. It's worth noting that Google demands audit rights akin to a governmental authority. If developers opt for this, Google reserves the right to audit their books on-site once a year, with the developers footing the bill for any auditors they choose to employ,” he highlighted.

“The third option offered is the consumption model, allowing apps to be listed on the Play Store without the ability to charge customers. Essentially, no payments can be accepted on the Play Store. This decision was made to maintain visibility, as customers may assume the worst if an app suddenly disappears from the platform, fearing that the company has shut down or engaged in fraudulent activities. Many developers, including ourselves, have transitioned some of our apps to the consumption model to reassure customers and maintain our presence on the Play Store. This action was necessary because customers often lack understanding of the complexities involved and may jump to conclusions if an app disappears from the store, fearing the worst regarding their investments and security. Thus, compliance with one of Google's models was deemed necessary to ensure continued visibility and customer trust,” he added.

He further added that 90% of the apps that were delisted remain delisted. “Only 10% of them, where we need to save face, have been reinstated. Consequently, all the brands have decided to select one main app, one flagship app, and transition it to the consumption model, obtaining approval from Google. This is our strategy to maintain visibility. However, despite this effort, our business remains unlisted, and we are unable to acquire new customers due to Google's policies,” he said

Challenges Associated with Creating India’s Own Playstore-like Platform

As the conversation delved deeper, Vinay emphasized the challenges of establishing an indigenous app platform. Despite the Indian government's support for the local app ecosystem, Google's stranglehold over the market hindered the emergence of alternative platforms. “Google holds the reins, serving as the gatekeeper of the entire ecosystem. Consider the recent launch of the Indus App Store, owned by Walmart, though not solely Indian. Despite its existence as an alternative app store, Google refuses to list it on their Play Store. To access the Indus App Store, users must download its APK, which, unfortunately, is often viewed as a cumbersome and untrustworthy process. Even after successfully installing the Indus App Store, Google continues to cast doubt by flagging apps downloaded from it as suspicious, dissuading users from proceeding. In such a hostile environment, how can an alternate Play Store thrive? he asked.

Nevertheless, he advocated for the creation of a regulated Bharat Play Store, mandated for all Indian smartphone manufacturers, as a means to break Google's monopoly. 

Views on the Indian Governments Stance on the Matter

Singhal, while appreciating the support being offered by the Indian Government, said: “The government has been extremely supportive, and we're deeply grateful for their assistance. Over the weekend, they promptly arranged a meeting for us, which took place on Monday. We met with both ministers, Rajeev Chandrasekhar and Ashwini Vaishnaw. They assured us of their commitment to take whatever actions are within their power. However, it's unfortunate that India lacks specific laws or legislation enabling direct action in such cases. The CCI is the sole authority capable of addressing this issue. We earnestly hope that the CCI takes decisive action. Although, Google appears indifferent to the directives issued by the CCI, blatantly disregarding an order issued nearly a year ago.”