Google Play Store
Google has a made a bold statement after removing Indian Apps from Google Play Store including likes of Matrimony.com, Naukri, 99acres, Kuku Fm amongst others for not complying to their demand of sharing 11-26% of their revenue from the apps with them
Google is going on the offense!
In an unprecedented yet bold move, Google recently removed 10 popular Indian apps from the Google Play Store. The list of removed apps includes some of the country's most popular and widely used platforms, including Bharat Matrimony, Shaadi.com, Truly Madly, QuackQuack, and Kuku FM, amongst others.
But why did Google take such a drastic step? The answer is revenue sharing. Google has a policy in place that expects these companies to pay a share from each transaction made via these apps. In simpler terms, every time you make a purchase or any kind of transaction within these apps, a certain percentage of that money goes to Google as a part of this revenue sharing agreement.
This revenue share is 11-26% imposed on the revenue generated by these apps. To give you a clearer picture, let's break down the numbers: if you, as a user, were to buy an app for Rs 100, 18% of this amount would go to the government as part of taxes, and up to 26% would go to Google if your business has a turnover of more than 1 Million USD. After these deductions, the company is left with a mere Rs 58.7.
Effectively, companies are losing a significant chunk, approximately 41%, of their revenue between the government and Google. But the financial obligations don't end there. If a company is profitable, it is further obligated to pay a corporate tax, which currently stands at 30-40% in India.
This situation has sparked a discussion about the need for homegrown digital infrastructure. Info Edge founder Sanjeev Bikhchandani, has suggested that India needs to develop its own government infrastructure like ONDC and UPI to lessen the dependency on international giants like Google.
This sentiment is one I find myself in full agreement with. However, I'm curious to know, what's your take on this?
Although Indus Appstore presents a potential solution, the real question lies in whether developers, who have long relied on the Google Play Store, would be willing to migrate to this new platform. I would love to hear your thoughts on this matter.
In an unprecedented yet bold move, Google recently removed 10 popular Indian apps from the Google Play Store. The list of removed apps includes some of the country's most popular and widely used platforms, including Bharat Matrimony, Shaadi.com, Truly Madly, QuackQuack, and Kuku FM, amongst others.
But why did Google take such a drastic step? The answer is revenue sharing. Google has a policy in place that expects these companies to pay a share from each transaction made via these apps. In simpler terms, every time you make a purchase or any kind of transaction within these apps, a certain percentage of that money goes to Google as a part of this revenue sharing agreement.
This revenue share is 11-26% imposed on the revenue generated by these apps. To give you a clearer picture, let's break down the numbers: if you, as a user, were to buy an app for Rs 100, 18% of this amount would go to the government as part of taxes, and up to 26% would go to Google if your business has a turnover of more than 1 Million USD. After these deductions, the company is left with a mere Rs 58.7.
Effectively, companies are losing a significant chunk, approximately 41%, of their revenue between the government and Google. But the financial obligations don't end there. If a company is profitable, it is further obligated to pay a corporate tax, which currently stands at 30-40% in India.
This situation has sparked a discussion about the need for homegrown digital infrastructure. Info Edge founder Sanjeev Bikhchandani, has suggested that India needs to develop its own government infrastructure like ONDC and UPI to lessen the dependency on international giants like Google.
This sentiment is one I find myself in full agreement with. However, I'm curious to know, what's your take on this?
Although Indus Appstore presents a potential solution, the real question lies in whether developers, who have long relied on the Google Play Store, would be willing to migrate to this new platform. I would love to hear your thoughts on this matter.
In an unprecedented yet bold move, Google recently removed 10 popular Indian apps from the Google Play Store. The list of removed apps includes some of the country's most popular and widely used platforms, including Bharat Matrimony, Shaadi.com, Truly Madly, QuackQuack, and Kuku FM, amongst others.
But why did Google take such a drastic step? The answer is revenue sharing. Google has a policy in place that expects these companies to pay a share from each transaction made via these apps. In simpler terms, every time you make a purchase or any kind of transaction within these apps, a certain percentage of that money goes to Google as a part of this revenue sharing agreement.
This revenue share is 11-26% imposed on the revenue generated by these apps. To give you a clearer picture, let's break down the numbers: if you, as a user, were to buy an app for Rs 100, 18% of this amount would go to the government as part of taxes, and up to 26% would go to Google if your business has a turnover of more than 1 Million USD. After these deductions, the company is left with a mere Rs 58.7.
Effectively, companies are losing a significant chunk, approximately 41%, of their revenue between the government and Google. But the financial obligations don't end there. If a company is profitable, it is further obligated to pay a corporate tax, which currently stands at 30-40% in India.
This situation has sparked a discussion about the need for homegrown digital infrastructure. Info Edge founder Sanjeev Bikhchandani, has suggested that India needs to develop its own government infrastructure like ONDC and UPI to lessen the dependency on international giants like Google.
This sentiment is one I find myself in full agreement with. However, I'm curious to know, what's your take on this?
Although Indus Appstore presents a potential solution, the real question lies in whether developers, who have long relied on the Google Play Store, would be willing to migrate to this new platform. I would love to hear your thoughts on this matter.
In an unprecedented yet bold move, Google recently removed 10 popular Indian apps from the Google Play Store. The list of removed apps includes some of the country's most popular and widely used platforms, including Bharat Matrimony, Shaadi.com, Truly Madly, QuackQuack, and Kuku FM, amongst others.
But why did Google take such a drastic step? The answer is revenue sharing. Google has a policy in place that expects these companies to pay a share from each transaction made via these apps. In simpler terms, every time you make a purchase or any kind of transaction within these apps, a certain percentage of that money goes to Google as a part of this revenue sharing agreement.
This revenue share is 11-26% imposed on the revenue generated by these apps. To give you a clearer picture, let's break down the numbers: if you, as a user, were to buy an app for Rs 100, 18% of this amount would go to the government as part of taxes, and up to 26% would go to Google if your business has a turnover of more than 1 Million USD. After these deductions, the company is left with a mere Rs 58.7.
Effectively, companies are losing a significant chunk, approximately 41%, of their revenue between the government and Google. But the financial obligations don't end there. If a company is profitable, it is further obligated to pay a corporate tax, which currently stands at 30-40% in India.
This situation has sparked a discussion about the need for homegrown digital infrastructure. Info Edge founder Sanjeev Bikhchandani, has suggested that India needs to develop its own government infrastructure like ONDC and UPI to lessen the dependency on international giants like Google.
This sentiment is one I find myself in full agreement with. However, I'm curious to know, what's your take on this?
Although Indus Appstore presents a potential solution, the real question lies in whether developers, who have long relied on the Google Play Store, would be willing to migrate to this new platform. I would love to hear your thoughts on this matter.
