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Indian startup apps return to Play Store amid Google dispute; Exploring the quest for permanent solution
Indian startup apps make a comeback on Play Store amidst the ongoing tensions with Google. Explore the complexities of their dispute and the search for a lasting solution.
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After a break due to issues with Google, Indian startup apps are available again on the Play Store
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Concerns arose over app store rules and fees, causing tensions between Indian startups and Google
Indian startups' applications have been reinstated on the Google Play Store following a disagreement over the tech giant's billing policies. This decision comes after Google removed ten local developers' apps from its platform on March 1, citing noncompliance with its billing policies as per the Economic Times.
The move sparked a standoff between Indian internet firms and Google, prompting government intervention to find a long-term solution to the problem.
Restoration of apps and government intervention
On Monday, Google restored the apps of Indian startups that had selected one of the tech giant's three payment methods. However, Indian firms remained concerned about the impact of not having in-app purchases on their businesses.
The government, led by central IT ministers Ashwini Vaishnaw and Rajeev Chandrasekhar, called a meeting with Google and startup representatives to discuss the ongoing feud.
The government wants to restore the status quo and find a long-term solution to the conflict. Chandrasekhar assured startups that the Ministry of Electronics and Information Technology (MeitY) would work with Google to ensure a long-term resolution. The government is likely to develop a framework to prevent large internet companies from taking unilateral actions against Indian startups. 
Background of the dispute and legal proceedings
The conflict stemmed from Google's billing system for the Play Store, which initially charged a 15-30% commission on in-app payments. Following an order from the Competition Commission of India (CCI) in 2022, Google implemented the user-choice billing (UCB) system, which provides app developers with alternative payment options. However, developers argued that Google's commission rates were unsustainable.
Legal battles ensued, with the Supreme Court hearing appeals from internet companies challenging Google's billing methods. The Madras High Court dismissed startups' petitions, stating that only the CCI had jurisdiction over the matter. Meanwhile, the CCI is investigating whether the UCB system is a modified version of Google's previous billing system, which was deemed anti-competitive.
Implications for Indian startups and future prospects
Despite the reinstatement of apps, startup founders remain concerned about the long-term viability of complying with Google's policies. Some apps had to adjust their business models to accommodate Google's external payment options, which could cause user experience friction.
Indian startups emphasize the importance of being available on the Play Store for distribution but express concerns about Google's high commission rates. Compliance with Google's in-app billing options presents challenges for startups, and some find it financially burdensome.
ALSO READ: Why Did Google Reinstate Several Popular Indian Apps Two Days After Delisting Them on Play Store?
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