News Technology Startup founders to stick to their stand on Google charging up to 26 pc fee

Startup founders to stick to their stand on Google charging up to 26 pc fee

This follows a meeting between startup founders and Union IT and Telecom Minister Ashwini Vaishnaw and Minister of State for Electronics and IT, Rajeev Chandrasekhar where the government assured support.

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Google recently announced its decision to remove some Indian apps from its Play Store. The recent announcement from the company was related to a dispute over service fee payments. However, the company on Tuesday announced that it will temporarily restore all delisted apps from developers with pending appeals in the Supreme Court. This decision comes as the government meets with Google and digital startups to address the issue. But startup founders on Wednesday said that they will continue to oppose the tech giant imposing a fee of 11 to 26 percent on in-app payments.

This comes after some startup founders met Union IT and Telecom Minister Ashwini Vaishnaw and Minister of State for Electronics and IT, Rajeev Chandrasekhar to discuss the issue, and said that the government had assured them support.

Thanking the ministers, BharatMatrimony CEO Murugavel Janakiraman, in a statement to IANS, said: "We continue to maintain our stand that 11 to 26 percent for payment gateway is unreasonable and selective for digital apps, while Google offers the same service for all digital companies."

Applications from companies like Altt, Stage, and Aha streaming platforms, Truly Madly and Quack Quack dating apps, Kuku FM audio content platform, and FRND social networking app were also delisted by Google.

"Google charging up to 26 per cent of the app's revenue, represents a significant financial burden for app developers," Co-Founder & CEO of TrulyMadly, Snehil Khanor, said.

"We will establish a forum comprising app developers and Google representatives. This forum will facilitate ongoing dialogue aimed at reaching a resolution within the next 100-120 days," he added.

During the ADIF (Alliance of Digital India Foundation) conference, the founders told reporters that their business dropped by around 40 percent on the second day after their apps were delisted.

"The government has consistently demonstrated its support for the startup ecosystem, which is pivotal for realising the ambitious Digital India vision. As digital startups continue to innovate and drive growth, we trust that the government’s support will be steadfast," said Prateek Jain, Associate Director, ADIF.

Jain also said that they are hopeful for a swift and favourable consideration of the pending case with the CCI (Competition Commission of India), which will be a significant step forward for the digital economy.

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Inputs from IANS