MEITY approached by Paytm and other startups over Google's PlayStore policy

Some founders approached the Ministry of Electronics and IT (MEITY) to raise concerns around Google's Play Store billing policy that has turned into a raging issue in the tech industry after a few rounds of industry meetings with the startup ecosystem.

Several founders, led by Vijay Shekhar Sharma of Paytm, held a virtual meeting with senior MEITY officials, sources reported.

Several Indian startup founders have had frenzied meetings over recent days to evaluate legal options, including approaching regulators such as the Reserve Bank of India (RBI) and the Competition Commission of India (CCI) against Google over its PlayStore policy.

Google reiterated its PlayStore billing policy which entails that a 30 percent fee will be levied on all in-app purchases and that all payments for in-app purchases will have to be routed through Google’s PlayStore billing platform.

This has not gone down well with the Indian startup ecosystem, especially as they rely largely on the over 90 percent penetration of Android phones in the country.

The Internet and Mobile Association of India (IAMAI), an industry body for startups and internet companies, both domestic and global, called for a founders’ meeting to discuss the issue and the impact of the policy on Indian players.

Founders of several leading startups such as PhonePe, RazorPay, Dream 11, Sharechat, as well as the Payments Council of India were part of the meeting, as per sources.

Google, which is also an IAMAI member, however, was not part of the meeting, sources suggested.

“We discussed all possible options, including taking up the matter with the RBI on Google’s restrictive clauses on payments and the CCI on the anti-competitive policies on the PlayStore,” an industry member who attended the meeting reported requesting anonymity.

“We will also be speaking to lawyers to evaluate all options, including taking this to the court,” the person said.

It is not clear whether IAMAI will immediately take these steps or will hold further meetings, including with Google at the table.

Payment players, including the Payments Council of India, have raised concerns over Google's restrictive policy to route all payments through its own billing store.

“Just because Google owns the gate and the gateway to the digital ecosystem of this country, they should not act arbitrarily and enforce their rules and regulations which are contrary to our country’s laws. Also, they cannot force Indian Apps, developers/owners, to sell digital services to compulsorily use the Google Billing and payment system and charge 30 percent MDR," said Vishwas Patel, founder CCAvenue and chairman, Payments Council Of India.

"In Indian Courts, Google says it does not need RBI authorisation as it is not a payment system operator and here it is mandating that Indian Apps use only Google’s proprietary Billing and Payment systems. Google should not use dominant position rather allow a level playing field for everyone in the ecosystem," he added.

For Paytm, the issue is also personal as the company saw its app temporarily delisted last month by Google over violation of the Playstore's gambling policies.