Downloading now: More fights over app store policies could be coming | Tech News

India’s mobile economy and the purchasing power of its consumers could pitch homegrown startups against Google again – like they did earlier in March.

Google delisted a number of Indian startups for not complying with its billing policy, which charges up to 30 per cent of money spent through apps downloaded from its Play Store. The apps were restored after the Indian government mediated.

India has banned more than 200 Chinese apps since 2020 and subsequently “…domestic apps have been quick to fill the void”, said the report.

Indian app-makers are asserting themselves at a time when global research suggests that the mobile economy is becoming increasingly valuable. The share of advertising has grown from $190 billion in 2019 to $362 billion in 2023. The value of consumer spending on mobile apps rose from $120 billion to $171 billion.

Google collects 11-30 per cent of fees from each transaction when people spend money on apps. The dominance of Google and other app stores has drawn antitrust attention in the United States (US), Europe and India.

India is not among the top 20 by that standard but its rank may well rise as per capita income improves. India has a per capita gross domestic product of around $2,500 compared to over $12,500 in China. The amount of money going as commissions charged by intermediaries such as Google’s app store would accordingly increase.

India has the second-highest number of mobile app downloads in the world. It is second to China and ahead of the US. A larger proportion of Indian users may well be converted into paying customers when incomes rise (chart 3).

This may also mean that the controversy over Google’s billing policies may lead to more competition and extend to other dominant app stores. Apple, which has a similar offering, has been gaining market share in India.