With a 26% increase in operating income and a revenue of over INR 5,500 crore in FY24, Google India has maintained its growth trajectory in the most recent fiscal year. However, in the fiscal year that ended in March 2024, Google India’s earnings after tax climbed by just 6% to INR 1,424 crore.
According to its financial statement obtained from the Registrar of Companies (RoC), Google India’s operating revenue climbed from INR 4,504 crore in FY23 to INR 5,518 crore in FY24.
In the meantime, the company’s other revenue increased by 106% to INR 403 crore from INR 195 crore in FY23. As a result, Google India’s overall revenue for FY24 increased from INR 4,700 crore to INR 5,921 crore.
The Revenue Model of Google India
Three main sources of income for Google India are enterprise products, IT-enabled services, and advertising. FY24 saw a 16% growth in revenue from IT-enabled services, reaching INR 2,389 crore. A sizeable amount of Google India’s revenue, the net sale of advertising space, increased 27% to INR 2,954 crore. Enterprise product revenue increased from INR 111 crore in FY23 to INR 174 crore in FY24, a 57% increase. This varied revenue stream highlights Google India’s growth into enterprise and IT services as well as its leading position in digital advertising.
Finance expenditures increased slightly by 6.4% to INR 142 crore, while employee benefit expenses increased by 10% to Rs 1989 crore. As a result of effective asset use, depreciation and amortisation expenses decreased marginally by 11.6% to Rs 277 crore from Rs 314 crore the previous year. At INR 1774 crore, other expenses—which include operational and administrative costs—saw a notable 31% increase. In FY24, Google India’s total expenses were INR 4,184.4 crore, up 16% from INR 3,609.4 crore in FY23.
Google’s Counterparts Giving a Tough Fight
Social media and e-commerce sites like Amazon, Meta (Facebook and Instagram), and local advertising companies compete with Google. By utilising its brand and wide range of products, including as search, YouTube, and Google Ads, which continue to generate substantial user engagement and income, Google sustains a strong market presence in spite of severe competition.
Facebook India Revenue in 2024
According to data released by Tofler, a market research firm, Facebook India Online Services, the advertising division of social media giant Meta, reported a 43% increase in profit to INR 504.9 crore for the fiscal year that concluded on March 31, 2024. In FY2023, the company reported a profit of INR 352.91 crore.
The activities of Facebook India Online Services Private Limited include selling advertising inventory to clients in India and offering Meta Platforms Inc. design and IT-enabled support services. In FY24, the company’s turnover increased by 9.33% to INR 3,034.82 crore from INR 2,775.78 crore in FY23. According to a report by Tofler, “the company’s total expenses for the fiscal were reported as INR 2,350 crore.”
On 23 September 2024, Prime Minister Narendra Modi participated in an important roundtable meeting with top technology experts from the United States. The topic of discussion was regarding the promotion of creativity and collaboration within India’s fast-growing technology sector.
In the course of Prime Minister Modi’s three-day trip to the United States, a significant portion of the trip was spent in New York City, where this high-profile meeting took place at the Lotte New York Palace Hotel.
The School of Engineering at the Massachusetts Institute of Technology (MIT) was the host institution for the event, which brought together renowned chief executive officers from leading firms that specialize in artificial intelligence, quantum computing, semiconductors, and biotechnology. Other notable individuals who were present at the event included Sundar Pichai, who works for Google, Jensen Huang, from Nvidia, Lisa Su, who serves for AMD, and Shantanu Narayen, CEO of Adobe.
Focus of This Round-Table Meet
The conversation centered on how cutting-edge technologies such as artificial intelligence (AI), quantum computing, and biotechnology are influencing the landscape of technology around the world and making a contribution to the advancement of humankind. The Ministry of External Affairs (MEA) brought attention to the fact that the discussion focused on how these technologies are being utilized to revolutionize the economy of the entire world and to improve the standards of living of people all over the world, including those living in India.
In the statement made by the Ministry of Executive Affairs (MEA), Prime Minister Modi emphasized India’s commitment to fostering ethical and responsible usage of artificial intelligence through its ‘AI for All’ strategy during the meeting.
Further, the Prime Minister reminded the leaders of the technology sector that India is committed to protecting intellectual property and developing an environment that is conducive to innovation driven by technology. He strongly encouraged the chief executive officers to capitalize on India’s economic expansion and the country’s potential to become the third-largest economy in the world in a relatively short time.
The Meet Highlights the Investment Opportunities in India
Another important point that was brought up throughout the conversation was the potential for investment in India’s rapidly developing startup ecosystem. An emphasis was placed on the role that startups play in driving technological developments and providing creative solutions, as well as the potential that startups have to function as a bridge for American corporations who are entering the Indian market.
Sundar Pichai, CEO of Google, spoke to the press after the roundtable and said that Prime Minister Modi has encouraged the tech industry to keep creating and developing in and for India. In addition to this, he went on to state that the Prime Minister of India is concerned with ensuring that artificial intelligence is ultimately developed for the benefit of the people of India. He is pressing those who work in the field of technology to do more in the field of artificial intelligence so that it might be of use to the people of India.
As both countries continue to investigate potential pathways for mutual growth and innovation, this roundtable represents a crucial step in strengthening the ties that bind India and the United States, particularly in the field of technology.
The government of Tamil Nadu and tech giant Google have inked a memorandum of understanding (MoU) to establish “Tamil Nadu AI Labs” in Chennai.
Google and Guidance, the government agency in Tamil Nadu responsible for promoting and facilitating investments, have signed a memorandum of understanding (MoU) to help the establishment of a strong artificial intelligence ecosystem. Enabling individuals, businesses, and government bodies to harness AI for equitable growth and advancement involves giving access to innovative technologies and resources.
Minister for Industries Govt of Tamil Nadu TRB Rajaa announced a new relationship with Google and the launch of a new programme called ‘#TamilNaduAILabs’ at Guidance TN in Chennai in a post on X.
The minister went on to say that the partnership’s goals include assisting small and medium-sized enterprises (SMEs) and the rural economy, helping two million youths become AI experts through the Naan Mudhalvan initiative, and working together with startups. Following the visit of Chief Minister M K Stalin to the United States, this statement is issued.
Rajaa went on to say that the state government established over 4,000 high-quality employment and attracted investments worth INR 900 crore through the signing of six memorandums of understanding (MoUs) in various high-impact sectors.
Sectors and Investments
Some of the companies that have invested in this region include Nokia’s research and development center in Siruseri, PayPal‘s development center in Chennai focused on artificial intelligence and machine learning, Microchip and Yield Engineering Systems in Coimbatore, Applied Materials’ advanced AI technology center, and Infinx’s technology center in Madurai.
“Since CM Stalin has arrived in the US, Tamil Nadu is speeding into a new age of technological innovation, design of semiconductors, and artificial intelligence!” Rajaa posted.
This is significant because, following the post-pandemic spike in digitization, a growing number of large tech companies are considering investments in India to meet the country’s increasing demand.
Google began producing the Pixel 8 smartphone here earlier this month. Executives at the company are also quite optimistic about the premium smartphone market in India and its enormous growth potential.
Mentorship and networking opportunities with Google experts and industry leaders will be provided by Google in collaboration with Tamil Nadu’s startup ecosystem. The two will also host AI-focused events to address local concerns and encourage creativity and problem-solving. Eligible artificial intelligence businesses that have received venture capital funding can participate in the Google for Businesses program, which offers cloud credits, technical training, and business support to help them expand faster.
Google Showing Keen Interest in India
On the other hand, earlier this year, it was reported that Google was in advanced discussions to purchase a 22.5-acre land piece in Juinagar, which is located in Navi Mumbai, to construct the tech giant’s very first captive data center in India for the price of INR 850 crore.
Additionally, the leaders of the company are optimistic about the enormous development potential that India possesses in the premium smartphone market.
According to reports, the IT giant has already inked various lease agreements for space at colocation data centers in Navi Mumbai and Noida.
Subscription rates for YouTube Premium in India have been sharply raised by Google, with certain plans seeing increases of up to 58%. All three types of plans—student, individual, and family—are now subject to the new pricing structure.
In order to maintain their memberships, current customers must accept the revised tariffs, which were sent to them by email. YouTube says the price hike is necessary to fund the platform’s creators and artists as well as to enhance Premium features.
With a 12.6% increase, the monthly student plan is now INR 89, up from INR 79. The individual monthly package, meanwhile, is 15% more expensive at INR 149 compared to INR 129. With a price increase of 58% from INR 189 to INR 299, the monthly family plan is now the most expensive option. With this family package, you may subscribe to YouTube Premium and share it with up to five people.
There have also been price changes to the specific prepaid programs. Prepaid plans are now priced at INR 159 per month, INR 459 per quarter, and INR 1,490 per year. All YouTube Premium subscribers, whether new or old, will be subject to these price changes.
Benefits of Being a Paid User
The premium version of YouTube provides users with access to all of YouTube’s original content, as well as the ability to watch videos on YouTube without interruption from advertisements, as well as to download them offline. The YouTube Premium membership comes with access to the YouTube Music Premium service.
According to the firm, these decisions are not made lightly, and this upgrade will enable us to continue to develop Premium and provide support to the creators and artists that you watch on YouTube. There has been an increase in the number of emails sent to existing premium subscribers, requesting that they consent to the new fee. The correspondence indicates that the subscription will terminate prior to the implementation of the new price on the subsequent billing date in October if no action is taken by the upcoming billing date in September.
Google’s Recent Growth
In November 2022, YouTube announced 80 million paying subscribers; by February 2024, that number had risen to over 100 million across YouTube Premium and YouTube Music. According to Alphabet CEO Sundar Pichai, who announced in January that Google’s subscription business surpassed $15 billion per year, this development is in line with the company’s overall surge in subscription revenue.
As part of its efforts to guarantee that content creators get paid, YouTube warned in April that third-party ad-blocker app users might experience buffering problems or error warnings. Reiterating its position against ad-blocking third-party apps, the business emphasized that ads help creators and keep the platform accessible to users all around the world.
“When third-party apps comply with our API Services Terms of Service, we have no problem allowing them to use our API. However, if we discover an app that does not, we will take necessary measures to safeguard our platform, creators, and viewers,” YouTube said in a community announcement.
As part of its ongoing effort to rethink search using generative AI, Google has taken a giant leap forward by extending its AI-powered Search Overviews to six additional countries, including India. The goal of this feature is to improve the user experience and expose individuals to other viewpoints and knowledge by providing brief explanations of complicated subjects.
Using generative AI, AI Overviews synthesise data from multiple sources and display it in an approachable manner; they were introduced in Search Labs last year. This facilitates the rapid understanding of difficult concepts, the investigation of other points of view, and the exploration of particular areas of interest.
Google is expanding AI Overviews to other countries after receiving strong feedback from consumers in the US and Search Labs worldwide. These countries include Brazil, Mexico, Indonesia, India, and the UK. Every country will have local language support for this function.
What Google is Offering to India?
Both English and Hindi versions of AI Overviews will be made accessible in India, and they will include features that are tailored to the needs of Indian users. A number of the most notable features are available, including the ability to switch between English and Hindi results with ease, the ability to listen to responses from AI Overviews with only a push of the ‘Listen’ button, and many others.
Google has reaffirmed its commitment to connecting consumers with a wide variety of sources. The purpose of AI Overviews is to inspire users to explore and interact with the internet, hence generating higher-quality traffic for businesses and publishers.
In a blog post, Hema Budaraju, Senior Director of Product, Search (AI) Generative Experiences, Google, announced that the company is introducing popular features that were well-received during their Search Labs experiment: the ability to easily switch between English and Hindi results using a language toggle button and the ability to listen to responses with Text-To-Speech by tapping the ‘Listen’ button.
According to Budaraju, the expansion will be introduced slightly over the period of a few weeks.
Google is also launching a new right-hand link display for AI Overviews on desktop, which can be accessed on mobile by pressing the site icons on the upper right. This is all part of an effort to help consumers navigate more relevant websites and discover what they need.
Controversy Regarding AI Overview
Google had to limit the AI-generated feature’s use just fifteen days after it debuted due to user complaints that the responses were harmful and unreliable. The AI was found to be recommending bizarre things to users, such as swallowing a small pebble with their vitamins, drinking urine to pass a kidney stone, fixing pizza cheese with Elmer’s glue, and many more.
The first major victory for federal authorities challenging Big Tech’s market dominance came on Monday when a U.S. judge determined that Google broke antitrust laws by spending billions of dollars to establish an illegal monopoly and become the default search engine worldwide.
A second trial might be held to evaluate possible remedies, such as the dissolution of Alphabet (GOOGL.O), Google’s parent company, which would alter the internet advertising landscape that Google has controlled for many years (opens a new tab).
Also, it gives the go-ahead for the United States antitrust enforcers to crack down on Big Tech, a sector that has received criticism from all sides of the political aisle.
The court has concluded that Google is a monopolist and has behaved in a monopolistic manner to preserve its monopoly, according to U.S. District Judge Amit Mehta of the Washington, D.C., court. Nearly 90% of all web searches and 95% of all smartphone searches are controlled by Google.
Google’s Take Against the Ruling
Despite Mehta’s decision, Alphabet intends to appeal. “This decision recognises that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available,” according to a statement from Google.
Attorney General Garland praised the decision, saying it was “a historic win for the American people,” and that “no company – no matter how large or influential – is above the law.”
With the “pro-competition ruling being a victory for the American people,” White House press secretary Karine Jean-Pierre proclaimed, “Americans deserve an internet that is free, fair, and open for competition.”
Spending Billions to Be a Frontrunner
To maintain its strong market dominance and make its search engine the default on smartphones and browsers, Google spent $26.3 billion in 2021 alone, as pointed out by Mehta.
“The default is extremely valuable real estate,” Mehta described in the paper he wrote. “Even if a new entrant were positioned from a quality standpoint to bid for the default when an agreement expires, such a firm could compete only if it were prepared to pay partners upwards of billions of dollars in revenue share and make them whole for any revenue shortfalls resulting from the change.”
The loss of defaults would have a devastating effect on Google’s financial line, he continued. As an example, Google has calculated that if Safari were to no longer be the default browser, it would lead to an enormous drop in search volume and a loss of billions of dollars in income.
This decision marks a watershed moment in a string of lawsuits challenging purported monopolies in the technology sector. The Trump administration took this matter up with a judge from September through November of last year.
The parent company of Google, Alphabet, is reportedly in negotiations to acquire the cyber security startup Wiz for approximately $23 billion. This would be the biggest acquisition that Alphabet has ever made. The talks may not go through because many aspects have not been worked out yet, according to a report from a well-known media outlet. A little over ten years ago, Alphabet paid $12.5 billion to acquire Motorola Mobility.
What is Wiz?
Wiz, with headquarters in New York and founded in 2020, has raised over $2 billion in funding. Assaf Rappaport, an Israeli entrepreneur and former Microsoft executive, is the CEO of this $12 billion firm. Thrive and Sequoia Capital are among its backers. Tel Aviv is home to Wiz’s R&D facilities.
With more and more enterprises storing data and software in the cloud, Wiz assists them in securing their cloud programs. Reports indicate that the company’s yearly recurring revenue has surpassed $350 million.
An agreement to purchase Wiz would rank among the biggest purchases of a company funded by venture capital in history.
This young company claims, on its website, to be “mission-driven to assist organizations in developing safe cloud environments that power their enterprises.” To rephrase, it is a cybersecurity company that aids businesses in protecting themselves from potential dangers when they utilize cloud computing services.
Colgate-Palmolive, AON, IHG Hotels & Resorts, BMW, and many more prominent brands are Wiz customers. In 2023, WIZ introduced its Digital Forensics capabilities, which enable organizations to promptly address threats in contemporary cloud environments by autonomously obtaining forensic-level detail on incidents through a cloud-native approach.
By downloading a forensic investigation package that contains the information needed for the incident’s first evaluation, businesses can quickly access the critical security logs and artifacts of the potentially infected system. Without executing any collection tools or scripts created in-house on the compromised workload, the forensics package is collected in an agentless manner.
Why is Google Showing a Keen Interest in Wiz?
The CEO of Google Cloud, Thomas Kurian, reportedly spearheaded the effort to purchase Wiz, according to a well-known news outlet. According to the article, Kurien and Google are working on a plan to elevate Google Cloud’s cybersecurity offerings.
It is believed that Google would make its largest acquisition to date if the $23 billion deal for Wiz goes through. Before this, in 2011, Google paid an astronomical $12.5 billion to acquire Motorola. The business, however, sold it to Lenovo for $3 billion two years down the road. One such cybersecurity company that Google purchased in 2022 for $5.4 billion was Mandiant.
Not long ago, Alphabet considered acquiring HubSpot, a provider of marketing tools for the web but ultimately opted against it. It looks to be shifting its attention now to strengthening its cybersecurity skills, perhaps through the acquisition of Wiz.
As of yet, neither Alphabet nor Wiz have made any statements about the potential merger. Because of the potential influence on cybersecurity and Alphabet’s bottom line, the IT industry is keeping a careful eye on the outcome of this massive transaction.
In response to escalating concerns over online privacy, tech giant Google is re-evaluating its data collection practices. Google, a major player in the digital advertising realm, recently announced plans to bid farewell to third-party cookies in its Chrome browser by the end of 2024.
This important decision shows a big change towards protecting user privacy and is a major moment in how online advertising works.
For years, cookieshave served as thebackbone of online advertising, enabling advertisers to follow users’ digital footprints and deliver targeted ads tailored to their interests and behaviors.
However, Google’s recent announcement heralds a new era—one characterized by heightened privacy concerns and a growing demand for transparency in online interactions.
Google Chrome has already initiated testing by limiting third-party cookies for 1% of users since January 4th, 2024. Third-party cookies have already been disabled by default for all Firefox and Apple Safari users.
Cookies, small data files, play a crucial role in enhancing user experience by storing preferences, login details, and other information during website visits.
Cookies, once intended to improve the user experience on the internet, took on a negative connotation due to their association with intrusive tracking methods.
For close to ten years, reports have surfaced about tech firms and data brokers allegedly selling individuals’ data, including financial, medical, and location information, often gathered through third-party cookies, without explicit consent.
Google Begins to Block Cookies: What it Means for Consumers and Advertisers
In response to these issues, the US, the European Union, and, more recently, India have enacted stringent data privacy regulations to address these practices.
What are Third-Party Cookies?
When you visit a website, you might see ads or buttons from other places. These use cookies to track you. Some cookies are fine, but others, called third-party cookies, can track you across sites. To protect privacy, browsers are phasing out these third-party cookies—a process called cookie deprecation. It’s like cleaning up the internet to make it more private and secure.
Third-party cookies can track your online behavior across different websites, helping advertisers and marketers learn about your interests and show you targeted ads. However, some people are concerned about privacy because these cookies can gather a lot of information about an individual without explicit consent.
What Is Google’s Announcement
Google Chrome, a web browser utilized by 88% of internet users in India as of February 2024 and 64% worldwide, as of August 2023, has announced its gradual discontinuation of third-party cookies.
Global Market Share Held by the Leading Web Browser Versions as of August 2023
By the end of the year, it aims to extend this block to all of its 3 billion-plus users, marking a significant shift in online tracking practices.
Google Chrome’s measured rollout aims to address privacy concerns while providing advertisers and publishers with time to adapt their strategies.
The company has been ‘under pressure’ from government authorities and actively exploring alternatives through its Privacy Sandbox initiative, which aims to develop privacy-preserving technologies for online advertising.
While the move signifies a victory for user privacy advocates, it also presents challenges for advertisers and publishers who rely heavily on third-party cookies for targeted advertising and audience segmentation.
With the forthcoming demise of third-party cookies, advertisers will need to adapt new strategies and embrace alternative methods of reaching their target audiences.
Implications for the Digital Advertising Industry
Paradigm Shift in Advertising Practices
The discontinuation of third-party cookies heralds a paradigm shift in the methods of user tracking and targeting. Advertisers and publishers must explore alternative strategies such as leveraging first-party data and contextual advertising to effectively reach their target audiences.
“The future is about prioritizing trust while engaging with audiences. Consent-driven, first-party engagement with users is the way forward. Ultimately, embracing a trust-centric ecosystem will help brands integrate seamlessly into a cookie-less future, ensuring genuine connections and loyalty with their audience,” Rite KnowledgeLabs CEO and Co-Founder Zahara Kanchwalla told StartupTalky.
Challenges for Advertisers and Publishers
Entities reliant on third-party cookies for targeted advertising and audience segmentation may face hurdles in adapting to the new landscape. Exploring alternative strategies, including the utilization of first-party data and contextual advertising, becomes imperative to maintain effectiveness in reaching desired audiences.
Opportunities for Innovation
Google’s effort opens doors for new privacy-friendly advertising technologies. Advertisers and publishers can now explore better ways to reach people without invading their privacy. This means they can still make ads work well while keeping users’ information safe.
Shift Towards First-Party Data
With third-party cookies no longer available, advertisers will rely more on first-party data collected directly from their websites. This shift enables advertisers to build deeper, more meaningful relationships with their audiences by leveraging data they’ve gathered firsthand.
By focusing on their data, advertisers can gain a better understanding of their customers’ preferences, behaviors, and interests, leading to more personalized and targeted advertising campaigns.
Emphasis on Contextual Targeting
In the absence of third-party cookies, contextual targeting—delivering ads based on the content of the webpage rather than individual user data—becomes more important.
Advertisers can tailor their ads to align with the content’s context, ensuring relevance and increasing the likelihood of engagement. This approach not only respects user privacy but also allows advertisers to reach audiences in a more organic and non-intrusive manner.
Innovative Solutions and Technologies
The phasing out of third-party cookies spurs innovation in advertising technologies and solutions. Advertisers and ad tech companies are developing new tools and methodologies for audience targeting and measurement that prioritize user privacy while still delivering effective results.
This presents an opportunity for advertisers to explore and adopt cutting-edge technologies that enable more sophisticated and privacy-conscious advertising strategies.
Building Trust and Loyalty
By embracing privacy-conscious advertising practices, advertisers can build trust and loyalty with their audience. Demonstrating a commitment to protecting user privacy can differentiate advertisers from competitors and enhance brand reputation.
Consumers are increasingly concerned about privacy and data security, and advertisers that prioritize these values are likely to resonate more positively with their target audience.
Diversification of Advertising Channels
As advertisers adapt to the changes brought about by the phasing out of third-party cookies, they may explore alternative advertising channels beyond traditional digital display advertising. This could include investing in channels such as influencer marketing, sponsored content, or native advertising, which rely less on user tracking and more on engaging content and authentic connections with audiences.
Google’s Privacy Sandbox Initiative
As part of its proactive approach, Google has launched the Privacy Sandbox initiative, aimed at developing privacy-preserving technologies for online advertising. This initiative seeks to provide advertisers with effective targeting and measurement tools while upholding user privacy.
Privacy Sandbox: Creating a more private internet
Competitive Landscape
Google’s decision resonates across the digital advertising industry, impacting competitors and shaping industry strategies. As a dominant player, Google’s actions set standards and drive innovation among advertising platforms and technology providers.
Challenges to Be Faced by Google
Monetization Challenges
Google generates a significant portion of its revenue from advertising, and the phasing out of third-party cookies could impact its advertising business in the short term.
Advertising Revenue of Google from 2010 to 2023
In 2023, Google generated a total revenue of USD 305.63 billion, with advertising contributing significantly to its earnings. The primary source of this advertising revenue for Google is search advertising.
Conclusion
Google’s move towards phasing out third-party cookies signifies a monumental step toward bolstering user privacy in online advertising. While posing challenges for advertisers and publishers, it also fosters opportunities for innovation and differentiation. By prioritizing user privacy and fostering a transparent digital ecosystem, Google sets a precedent for the future of online advertising.
Key Takeaways
Google’s initiative signals a shift towards privacy-centric advertising technologies.
Advertisers and publishers are encouraged to explore innovative methods for audience targeting and measurement.
These new approaches prioritize user privacy while maintaining advertising effectiveness.
The initiative aims to strike a balance between reaching audiences and safeguarding user data.
Overall, the focus is on advancing advertising practices in a way that respects user privacy.
In a significant turn of events following a tense standoff, tech giant Google has commenced the process of reinstating Indian app developers it delisted from its Play Store on March 1, 2024.
The decision to restore certain apps comes amidst a backdrop of heated negotiations, social media discussions, government pressure, and regulatory scrutiny surrounding Google’s billing policies and its implications for Indian startups.
On March 4, the Indian government called a meeting of the affected Indian app developers and tech behemoth Google to listen to both parties on the ongoing issue.
After Google’s delisting, Info Edge’s Sanjeev Bikhchandani says many of the company’s apps are back on the Play Store, an effort very well led by Hitesh Oberoi and the entire Info Edge team
The dispute, which erupted over Google’s insistence on its billing system and the imposition of hefty service fees, has sparked widespread concern within the Indian tech ecosystem.
On March 1, Google sent shockwaves through the Indian app developer community by removing 10 prominent developers from its Play Store, citing non-payment of service fees.
This abrupt action thrust the simmering conflict between Google and Indian app developers into the spotlight, prompting widespread debate and scrutiny over the tech giant’s policies and their impact on the digital ecosystem.
The affected apps, including Shaadi.com, Bharat Matrimony, Altt (formerly ALTBalaji), Kuku FM, Quack Quack, and others, have long been stalwarts of India’s digital landscape, catering to diverse user needs and preferences.
“It feels like we will never be able to operate safely if our ecosystem is controlled by them. We need the Indian government to step in and save the startup ecosystem,” KuKu FM’s Co-founder and CEO Lal Chand Bisu said on employment-focused social media platform LinkedIn.
The crux of the conflict lies in Google’s Play Store policies, particularly its requirement for developers to use the Google Play Billing System (GPBS) and pay commissions ranging from 11% to 26% on in-app purchases.
This move follows an order from the fair trade watchdog, Competition Commission of India (CCI), directing Google to revise its earlier system, which charged commissions as high as 30%, deeming it ‘anti-competitive’.
Despite the CCI’s directives and efforts by affected startups to seek relief through legal channels, Google proceeded with the delisting after the Supreme Court declined to provide interim relief. This unilateral action by Google has raised questions about the fairness of its app marketplace fee and its potential impact on the Indian startup ecosystem.
Around 30 companies had written a letter to Google, requesting the company not to delist their apps or take any ‘precipitative action’ against them till March 19 as their Special Leave Petition (SLP) comes up for hearing, according to a Times of India report published on Feb 13, 2024
The app developers had filed the petition against the judgment delivered by the Madras High Court on January 19. The Supreme Court directed the SLP to be listed on March 19 and denied interim relief to startups.
It has also sparked a debate to develop in-house an indigenous app store that reflects a growing sentiment toward promoting homegrown solutions and reducing dependency on global tech giants like Google.
What’s happening with popular apps in India, such as Bharat Matrimony, Naukri and others getting delisted on Google Play Store is classic monopoly abuse. With the dominant position of Android in India, it is important our regulators and courts get involved to level the playing…
In response to mounting pressure, Minister Ashwini Vaishnaw, from the Ministry of Electronics and Information Technology, intervened to facilitate discussions between Google and the affected app developers. Minister Vaishnaw emphasized the importance of upholding India’s policies and ensuring the protection of its startups in the digital marketplace.
“India is very clear, our policy is very clear…our start-ups will get the protection that they need. I have already called Google, I… pic.twitter.com/mKZSV2QflF
Union Minister Ashwini Vaishnaw on Google removing multiple apps from Play Store
In a rapid response after government intervention, Google has reinstated Info Edge’s array of mobile applications, including popular platforms like Naukri, 99acres, and Shiksha, just one day after they were delisted from the tech giant’s Play Store.
As per media reports, sources within Google revealed that the restoration of certain apps is contingent upon developers agreeing to comply with Android’s billing options or opting for a consumption-only model. Under the consumption-only model, developers can provide access to paid content without incurring service fees, offering a potential workaround to Google’s billing requirements.
Pls clarify that u are back up as consumption apps only ie without any in-app billing which will destroy the consumer side of the business in the longer-term. Otherwise this tweet will be interpreted as everything is back to status quo, which is NOT true https://t.co/E5vhnVP2G0
While the restoration of apps signals a temporary postponement for affected developers, the broader implications of the conflict remain unresolved.
The standoff between Google and Indian startups underscores the challenges of navigating the digital landscape, where tech giants wield immense power and influence over distribution channels and revenue streams.
However, the path to resolution remains fraught with challenges, as stakeholders navigate complex legal, regulatory, and commercial considerations.
As discussions between stakeholders continue, there is a growing consensus on the need for greater transparency, fairness, and regulatory oversight in the digital ecosystem.
As the saga unfolds, all eyes will be on the outcomes of negotiations and the steps taken by Google, Indian regulators, and app developers to find a resolution that balances innovation, competition, and consumer protection.
The outcome of this dispute will not only shape the future of app development and distribution in India but also set a precedent for how tech companies interact with emerging markets and their burgeoning startup ecosystems.
In the meantime, the March 1 de-listings are a stark reminder of the power dynamics in the digital ecosystem and the importance of advocating for fair and transparent policies that foster a thriving and inclusive tech landscape.
Industry experts believe that it will be essential for policymakers, industry stakeholders, and the broader community to collaborate and support initiatives aimed at building indigenous solutions.
Annual Number of App Downloads From the Google Play Store Worldwide from 2016 to 2022
“PhonePe launched the Indus app store in Q4 2023. But how many are using it? How many have even heard of it? The problem begins with Android and iOS being the major OS and thus having their default app distribution platforms pre-installed on the phones. Any other app distribution platform (such as Indus) cannot be listed on Google Play Store (or iOS Appstore),” replying to Lal Chand Bisu’s post, TopN Analytics Founder Harish Mahale said in his comments on LinkedIn.
On February 21, Walmart-owned PhonePe unveiled the Indus Appstore, a new Android app marketplace in India, poised to compete with Google Play and other alternative app stores.
“Notably, Indus offers Indian developers the freedom to choose any third-party payment gateway for in-app billings, a stark contrast to Google Play’s restrictions. This empowers developers and fosters a more competitive and diverse app marketplace. Embracing the IndusApp Store not only supports local innovation but also challenges monopolistic practices, contributing to India’s digital sovereignty. #IndusAppStore #SupportIndianInnovation #BreakMonopolies,” Ashish Kumar Shaw, State Head at PhonePe said in his comments on social networking site LinkedIn.
As per recent Indian Mobile App stats for 2024, India has claimed the top spot globally for the highest number of apps installed and actively used each month.
At present, Google Play serves as the designated app marketplace for the Android operating system, offering users the opportunity to discover and install apps and games developed using the Android software development kit (SDK).
There are 3,362,451 apps offered for free on Google Play, with an additional 107,095 apps requiring a purchase. However, it’s worth noting that many of the free apps may necessitate subscriptions or include options for in-app purchases.
Innovation is the key to success, which is true because new things are attracted much faster than older ones. Google did not only focus on its search engine but rather took the time to come out with tools that became beneficial for all groups of people.
The G Suite which is now known as Google Workspace is a collection of Google tools like Gmail, Google Drive, Google Sheets, Google Calendar, Hangouts, and many more. Most of these tools are used for free these days. But, have you tried its paid version yet? Well, you should try it out.
It was back in the year 2006 when Google officially launched its online office suite tools. Google wanted to bring a sense of control inside the organization and offer better features to people free of cost.
Not only did the common people benefit a lot but several large organizations used these tools for their daily activities. Though the tools were offered to the people free of charge people experienced their documents to be safe and secure and it was better than doing things manually.
Google Workspace collaboration tools include the following tools:
Gmail
Google calendar
Google Sheets
Google Docs
Google Slides
Google Keep
Google Hangouts
Google Meet
Google is still working on new things for a better experience in Workspace. Not only they are updating Workspace tools but they are developing new tools. When Google Classes was launched back in August 2014, many more tools were added like assignments along with many more.
Google meet, docs, slides, sheets chrome, Gmail, became useful tools not only for businesses but teachers and students showed results of improved effectiveness in their day-to-day learning.
Why Choose Google Workspace?
Google Workspace
There are several reasons why you can choose Google Workspace. Keeping aside all other factors, the price factor is one of the major factors why people just jump right into Google’s tools. It just doesn’t end there because not only the tools are cost-free but it is effective at the same time.
The effective features of Workspace tools become a great advantage to take over its competitors in the market. Google leads when it comes to their online tools and services and then other companies like Microsoft, Adobe, Slack, and other such companies follow.
Keeping aside all other things let’s focus on the pricing factors of these tools. Let us take an example of Gmail which has been offered to the common people free of charge but there is also a choice of pay where users can take the advantage of its premium features.
Some basic plans for Google’s Workspace tools start as low as INR 136.90 per month which is called the Business Starter plan. The Business Standard comes with INR 736 per month and the Business Plus plan comes with INR 1380per month. Apart from this there is also a free trial to let you expedience its magic!
Almost all the tools of Google Workspace are free to use but to get the benefits of premium features one has to make the predetermined payment. For example, if you get the paid version of Gmail then you can get the option of choosing a custom email domain. You will also get unlimited group email addresses.
Other than those you will also experience the benefit of storage which will be doubled once you get the premium version of Gmail. No advertisement and 24/7 customer support. Similarly, you can get benefits if you pay for other Workspace tools.
The company has promised that it will bring updates to its tools to provide a secure network. Google Workspace will also be adding ‘Drive Labels in Workspace’ where both common people and businesses would be able to classify files stored in Drive based on the sensitivity level.
This will help businesses and organizations ensure that there is no external sharing, or downloading of sensitive files. Hackers and other cybercriminals would have to think twice before stealing because if they try to then organizations will be warned about it beforehand.
Google will also bring out a new team that will oversee the security department. The Google Cybersecurity Action Team (GCAT) would be managed by top-class cybersecurity experts from the company.
Conclusion
Google Workspace recently made huge news where they will be adding new app integrations and security capabilities. So, there is no saying that Google Workspace will stop updating its existing tools and also roll out new ones in the future.
FAQs
Is G Suite and Google Workspace the same thing?
Google updated its G Suite to Google Workspace where tools like Gmail and Google Docs getting a new logo along with added features.
Why was Google Workspace launched?
Google Workspace was launched with the vision for the future and to create a strong connection between humans.
Is Google Workspace safe?
Google Workspace is safe, employing encryption, authentication measures, access controls, audits, and compliance certifications to protect user data.
Nitin Konde
