The Big Daddy

Let's make sense of the Google v/s India war..

Oct 07, 2020

Here’s a task — give me a brand name which is no longer a mere noun, and is in fact, an action word (a verb)? Don’t know? Fine. Instead, why don’t you —

Damn it, how could you miss that? ‘Google’, the answer is.

Google is a quintessential market dominator. For the starters, the Android Operating System servicing (most of) our Mobile Phones is owned by Google. And here, experience the market dominance of Android in India —

Yes, over 95%, that is! Why is it so, you can always google it. But what concerns us is this market dominance paves way for yet another monopolistic attribute. Well, for all those using Android phones, you must be aware that it comes with a Google Play Store ‘by default’. That means most app downloads, free or paid, are to be routed through the Play Store. Besides more than 83% of mobile browser usage in India is attributed to the ubiquitous Google Chrome. Add to it.. Google Maps and You Tube (both owned by it), among others, now you see ‘the big daddy’, eh? And you know what, when you have such absolute power, you tend to exploit it. That’s the rule of nature!

So, the tussle began with the US Government set to launch an ‘Anti-trust case’ against Google in an attempt to prevent monopolization, especially in web searches and advertisements. (Basically, anti-trust laws are meant to promote competition in the market and reduce monopoly, as better competition ensures good quality products and prevents exploitative practices). And, a while later, the hostility wind enters India.

Panga nahi lene ka..

~ Don’t you dare fight with Indians! So yeah, the face-off begins with Google removing Paytm app and Paytm’s First Games app from its Play Store for violation of its guidelines on gambling. Fantasy sports apps (like First Games, Dream 11, etc.) allow you to set your team ahead of a match (say IPL), and in case your team performs well in the actual match, you make real money. Cool, isn’t it? May be for you, but not as per Google’s policies. Now the removal of these apps, obviously, didn’t bode well for the Founder & CEO of Paytm, Vijay Shankar Sharma.

He claimed that Google had arbitrarily (injudiciously) yanked off both the apps, though they were in no way related to gambling, and that it was a mere cashback campaign. He taunts the removal as unfair because even Google’s own digital payment app Google Pay provides such cashbacks! Probably a different set of rules applied to Google’s own apps, you never know!

But within a few hours, Paytm and First Games app were brought back to the Play Store. This was powered by, may be, Paytm’s strong engineering and legal team, who could re-edit the app and comply within hours. But, had it been a small app developer, this kind of advantage may not be available and it’s business would have taken a big hit! This happened with Zomato and Swiggy.. following a notice from Google, both had to altogether remove their gaming apps from the Play Store! Ouch!

Moreover, these arbitrary de-listing of (money-involved) apps also creates mistrust in the minds of users whose actual money is sitting in these digital wallets! Then, why not drag it to the court, you ask? Well, it ain’t so easy-peasy. You see, Google complies with the standards of US. So, you also have to file and run a concurrent case in the US court of law to sue it. And that would cost you an arm and a leg! Ergo, there is a necessity for these internet giants to be subsumed into Indian laws as well.

The Competition Commission of India, too, hasn't been happy with the autonomy that Google is exploiting. Btw, that’s not the end.

Google Tax, for you..

Ever availed paid services from apps in the Play Store? Purchased a course on Udemy or whatever? Well, Google claims a commission from applications marketed on the Play Store, which sell digital services (like education, dating, video, music, etc.) Earlier some apps side-stepped it somehow. But recently, it announced that all in-app purchases of digital goods have to be made using Google Play’s billing system, out of which Google takes 30% and the rest goes to the concerned app developer. This 30% is too steep compared to 2% that credit card payment processors charge. And that’s a blunder!

The justification Google provides is that’s the cost of ensuring security, or simply put, that is Google’s way of telling you how dangerous it is to download an app from other unknown sources! Okay, there is merit in it’s argument. However, remember.. just because you download an app from the Play Store, it doesn’t relieve you of the risks! Besides, Android captures a lion’s share in the market and being an Android user, you don’t have many alternatives to an app store! Thus, Google could literally compel app developers to pay the 30% margin and if you don’t call it monopoly, I don’t know what it is!

Now, referring to this, Paytm chief Mr. Sharma said startups spend 50% of the money they raise in advertisement and commission, and Google takes all of this money and consumer data off-shore, looting India’s tech ecosystem! True that.

Now, this kind of a monopoly indicates a grim outlook for an Atmanirbhar Digital India and something had to be done about this. Ergo, many startup founders and chiefs (including Mr. Sharma) virtually joined for a discussion with the Ministry of Electronics and Information Technology (MeitY). And they came up with an idea to develop a ‘desi’ alternative to the Google’s Play Store. Intimidated by this, Google deferred the strict application deadline of the 30% commission to 31st March, 2022. To which Mr. Sharma criticizes, saying a mere deferment wasn’t enough! Whatever it is..

An Atmanirbhar App Store, or is it?

While “the Government is looking at the issue holistically”, Indian tech-entrepreneurs are leading from the front. Just like Phone Pe Switch, Paytm recently launched a mini-app store embedded within its app. (Mini app store allows you to access apps without downloading them.) A list of apps, the likes of Ola, Domino’s Pizza, Netmeds, etc. shall be available there, and not to forget.. listing and distribution of these apps will require absolutely #NoCharges ;-) Then, there are also talks involving a refurbished edition of the Government’s Mobile Seva App as a complete app store.

Note that Google wrote this in a recent blog post — “we will be making changes in Android 12 (next year’s Android release) to make it even easier for people to use other app stores on their devices.” So, Google is inviting competitors.

Time to break the monopoly, eh? Well, you can’t be too sure! First thing first, Google isn’t google just because of its play store. Note that, it has a list of applications which facilitate app developers (eg: Google Maps for Ola). Now, you could develop an alternative app store, but bundling all these services will be the real headache! Second, deep pockets like Google spend billions in developer tools and safety solutions; i.e. to remove bugs and malwares. Financing this could be difficult on the part of Indian startups, unless, of course aided by the Government. Third, if the platform is run by the Centre, won’t you fear Government surveillance? Of course you will, and this will raise skepticism on user privacy and data sharing. Besides, as per claims, only 3% Indian apps may have to bear the Google Tax, and considering all the incentives that Google offers, what do you think.. will app developers be able to switch? Do share your views.

And I leave it to you, with these lines from the pioneer, Mr. Sharma —

“The number of the developers who are ready to fight are in hundreds. This is not hunger for one day or one night. We will take the independence of our technology ecosystem. There is no company east or west that can take command of our destiny as an independent tech ecosystem, whether you come from the US, China or from Japan or Europe.”

Independence Day vibes, eh? Is it approaching?

So, hey guys, hope you loved this article. I am pretty confident you could make sense of what a mess Google has been to recently.

If you know someone who hasn’t been able to figure out the lefts and rights of the conflict, do share this article with them.

And yeah, I would love to know your views on this topic.

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