Google is set to shake up India's lucrative matrimony apps industry by potentially removing the apps of ten prominent companies, including some of the country's leading matrimony platforms.
This decision comes amidst a heated disagreement over service fee payments, marking a significant showdown between the Google and startup firms in the region.
Google threatens to remove top Indian matrimony apps over fee disputes, sparking a showdown with startups and impacting stock prices.
India's Matrimony App vs. Google
The dispute revolves around Google's attempt to levy fees ranging from 11% to 26% on in-app payments in India. This move follows regulatory orders to dismantle its previous fee structure of 15% to 30%, sparking resistance from the affected startups, Reuters reports.
Despite legal battles, Google has gained traction to either charge the fee or eliminate apps, thanks to court decisions in its favor in January and February. The company has already issued notices of Play Store violations to Indian firms such as Matrimony.com, the operator of BharatMatrimony, and Info Edge, which runs Jeevansathi.
Reacting to the notices, both Matrimony.com and Info Edge are reviewing their options and considering next steps. However, the news has already impacted their stock prices, with Matrimony.com shares plummeting by as much as 2.7% and Info Edge seeing a 1.5% drop after the Reuters report.
Based on data provided by Statista, Bharat Matrimony, also referred to as Matrimony.com generated an income exceeding four billion rupees during the fiscal year 2023.
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Concerns from Matrimony Apps
Matrimony.com's founder, Murugavel Janakiraman, expressed concern, stating that Google's move effectively means the removal of all top matrimony services. Meanwhile, Sanjeev Bikhchandani, founder of Info Edge, emphasized compliance with Google's policies, noting that all pending invoices have been settled promptly.
In response, Google has clarified its position, asserting that ten Indian companies have opted not to pay for the significant value they receive on Google Play. The tech giant underscores the role of its fees in supporting investments in the app store and the Android operating system, ensuring free distribution, and covering developer tools and analytic services.
This development has raised eyebrows within the Indian startup community, which has long been critical of Google's practices. With Google's dominant position in the Indian market-where 94% of phones run on its Android platform-any move by the tech giant has far-reaching implications.
India's Matrimony Apps
How exactly do matrimony apps work? These platforms play a crucial role in matchmaking, boasting millions of verified profiles, relationships, and marriages in India. They cater to diverse religious communities and linguistic preferences, enabling users to find partners based on specific criteria such as religion, language, and marital status.
Moreover, some matrimony apps go beyond matchmaking, offering additional services like astrologer consultations, wedding planning, photography, and love coaching.
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