Indian Startups Consider Imposing ‘Google Fee’ Amidst Delisting Crisis

The founders are looking at levying a ‘Google Fee’ or a ‘Google Tax’ on its end customers to pass on the costs related to hefty commissions charged by the tech major.

On March 1, Google delisted the apps of some of the biggest Indian startups, including Bharat Matrimony, Naukri, and ALTT, for not complying with its new billing policy.

The Commission Conundrum

At the heart of the row are Google’s 11-26% commissions and issues related to third-party payment systems in its new billing policy.

Close on the heels of Google delisting the apps of 10 startups from the Play Store, Indian founders are mulling novel ways to mount a counter-offensive.

Imposing a ‘Google Fee’: A Strategy to Rally Public Opinion:

As per chats accessed by Inc42, the founders are looking at levying a ‘Google Fee’ or a ‘Google Tax’ on its end customers to pass on the costs related to hefty commissions charged by the tech major.

The aftermath of the delisting spree saw some of the biggest titles in the Indian startup ecosystem publicly lash out at Google and call for the reinstatement of the apps.

Amid all this, Indian startups also launched a multi-pronged offensive against the tech major. Multiple founders are now batting for a state-backed app marketplace, modeled on the lines of digital public infrastructure such as the UPI and ONDC, to curb the dominance of the big tech major.

Industry Outcry and Regulatory Scrutiny:

Industry bodies also joined the chorus, criticizing Google’s actions and calling for reinstating the delisted apps.

As tensions escalate between Indian startups and Google, all eyes are now on what the SC and the CCI decide. Till then, the quarrel could rapidly evolve into a major crisis that could engulf the entire ecosystem and have a material impact on the financial well-being of the platforms.