Alphabet Inc.'s Google has recently reached an agreement to reinstate Indian apps removed from its app store amid a heated dispute over service fee payments. The decision follows intense scrutiny from the Indian government and pushback from affected startups.

Last Friday, Google took action by removing over 100 Indian apps, including popular ones by Matrimony.com, for failing to comply with its policy of paying a service fee for in-app payments. This move triggered criticism from Indian companies and prompted intervention from government authorities.

Google to Reinstate Deleted Indian Matrimony Apps

According to India's IT minister, Ashwini Vaishnaw, Google has committed to restoring the deleted Indian apps. He expressed optimism about reaching a long-term resolution between the startup community and Google in the coming months.

The dispute between Google and Indian startups revolves around the tech giant's attempt to levy fees ranging from 11% to 26% on in-app payments in India. This decision came after regulatory orders to modify its fee structure, leading to resistance from affected startups.

Despite legal battles, Google has gained momentum in enforcing its policies. Court decisions in favor of Google in January and February empowered the company to either charge the fee or remove apps that do not comply.

Matrimony.com, the operator of BharatMatrimony, and Info Edge, which runs Jeevansathi, were among the Indian firms that received Google notices of Play Store violations. 

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App Founders Expressed Concerns

Following the news of the app removals, Matrimony.com's shares plummeted by as much as 2.7%, while Info Edge saw a 1.5% drop in its stock price. Data provided by Statista indicates that Bharat Matrimony generated an income exceeding four billion rupees during the fiscal year 2023.

Expressing concern over Google's move, Matrimony.com's founder, Murugavel Janakiraman, stated that it effectively eliminates all top matrimony services from the platform. On the other hand, Sanjeev Bikhchandani, founder of Info Edge, emphasized the importance of compliance with Google's policies.

Google clarified its position, highlighting that ten Indian companies chose not to pay for the significant value they receive on Google Play. The tech giant asserts that its fees support investments in the app store, the Android operating system, and other developer tools and services.

Matrimony apps play a crucial role in matchmaking in India, boasting millions of verified profiles and facilitating relationships and marriages. Beyond matchmaking, these platforms offer additional services such as astrologer consultations, wedding planning, photography, and love coaching.

With Google's dominant position in the Indian market, any move by the tech giant has far-reaching implications. The resolution of this dispute will likely shape the dynamics between Google and Indian startups in the future.

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