Startup founders bat for an Indian app store

NEW DELHI: A number of leading technology entrepreneurs are joining hands to petition the government seeking support to create an overarching Indian digital app ecosystem to counter what they view as the dominance of US technology giants Google and Apple. At a meeting on Tuesday, the group discussed ways to establish a large-scale platform that will host local apps and break the duopoly of Google's Play Store and Apple's App Store, as well as a national-level lobby group to represent their interests, people privy to discussions told ET.The founders, including Paytm's Vijay Shekhar Sharma, Yashish Dahiya of Policybazaar and Murugavel Janakiraman of Matrimony.com, also plan to approach the country's banking regulator as well as the finance ministry seeking redressal for Google's recent move to increase commission on purchases made on its app store.'App Neutrality'Sources said such a move by Google would sound the death knell for the Indian startup ecosystem. "If India has net neutrality, why can't we have app neutrality," said Janakiraman, who added that over 80% of those accessing the internet in India do so through digital applications and "it can't be completely controlled by Google since they own the Play Store.""A body monitored by the government can ensure app neutrality, fairness and openness," he added.Vishwas Patel, founder of payment gateway CCAvenue, said, "The government has to certainly step in and take the lead on this.""If there is some kind of restriction imposed due to geopolitical tensions, an Indian app store can save the day for everyone," said Patel who is also the chairman of the Payments Council of India, a payments-centred industry body.A government official said they have not received any request from the industry so far. "But we will take up the matter if they approach us," the person said. Google did not respond to fresh queries sent by ET.Terming the meeting as "an informal one" to collate issues from all stakeholders and identify grievances, CCAvenue's Patel said the next step would be to identify the right authority to approach for resolution of multiple issues.The group plans to approach the ministry of electronics and IT (MeitY) to push the case for an Indian app store while also approaching the Competition Commission of India, National Payments Corporation of India and the Central Board of Direct Taxes for other related grievances.The need for an Indian app store gains urgency in the backdrop of India's smartphone market being dominated by Google's Android operating system.Founders arguing against Google's move to enforce a 30% commission on in-app purchases said that current Indian laws don't allow any MDR (merchant discount rate) or transaction charge on UPI (Unified Payments Interface) transactions. "We are currently discussing which should be our first port of call," said Patel. Also present at the meeting were founders of startups like ShareChat and Innov8, sources said.The meeting was spurred by the 'abrupt way' in which Google decided to implement its policy. "The company is forcing developers to use its own payment gateway, it is also controlling how ads appear and there are issues on search; they seem to have an unabated power over the entire ecosystem which we are against," said Patel.

from Economic Times https://ift.tt/36pRQuD