The Big Picture Indian App Store and Ecosystem

1) PayTM and Google have been at loggerheads in recent times. Specially after the latter remove the former from its play store to support the Indian app developers, the digital payment launched on Monday (5October2020) a New android apps store to support local developers and their initiative to the masses and across the country.
2) PayTM said that they will provide the listing and distribution of their new app within its app without any changes payments developers will be given a wave Amay of choices.
3) More than 300 app based services providers have already joined this platform.

Experts and patent:-
Vishal Gondal, founder and CEO, GOQii
Ramesh Kailasam, CEO, Indiatech. org
Frank Ransan Pereira, journalist/ host
T. V Mohandas Pai, chairman of Manipal Global education

  • Why do we need an Indian AppStore/Home Grown AppStore?
    • Mostly all the AppStore are Apple ios Or Android. Apple does not allow anyone unless an agreement with apple. This always is a one sided contract And Google To has a one sided contract and this create a digital monopoly. The work by contract and apps don’t have any protection.
    • The app owners have to pay up to 30% of the revenue to Apple Store. On Google, there is no need to pay share of revenue but can shut off apps whenever they seem fit and there is no right to appeal.
    • Therefore, there is a need for an Indian app store for all Indian apps and a regulator.
    • Other app store have their data centers outside India. The data centers have information about all apps and who have installed the apps. This data is extremely valuable. These app store have created such system which makes them to create more and more monopolies.
    • When India grows bigger in this area we won’t be at their mercy and they can shut us anytime because there is a fear of loss and to run out of business.
    • China has its own app store. As China has banned Google and Facebook. But China is a closed state, while as India is a open society where everybody comes in and must follow rules but sadly there is no rules yet.
    • It’s high time for India to have a apps store and it manages to become a digital power house. Money won’t be sent out of the country and only for the internal market.
  • How will Indian app stores help Indian startups and Indian developers?
    • If you look at the ecosystem today in India we are the biggest contributors to such digital ecosystem and a producing country. Around 170 countries there are certain pockets that are producing such apps and the rest are consuming.
    2.7 billion smartphone users around the globe. as per the data we have 500 million active smartphone users in India. one of the driving force for app is the market of Smartphones users in India
    • Statics revealed that he would have 300 million more smartphone users in the couple of years.
    • This has made urged to use app based payment economy and digital transactions are increasingly India is moving faster to digitalized economy. Although there are more than 300 plus app stores in the world it is largely dominated by apple an Android Play Store and one has a complete control over the handset. It is completely locked. In kind of scenarios we are in and even the algorithmic openness doesn’t exist in most of the cases.
    • Indian developers had an affinity of the Java based environment to lean towards Android and also due to affordable smartphones that exist. That’s the reason we let have Android 95% of the market . Android is open source and free but comes the version of Android is bundled with proprietary software by Google.
    • There is a significant amount of lock-ins plus lack of openness and transparency that exist on the way which can go about my business. If you look at continuum from distinct, development to distinct there is payment involved everywhere even the distribution which the app discusses through payment Gateway and Taxes.
    • If a person says 30% then the developer is running the business for charity. The need is for a choice by the developer there is openness in the market and transparency in the rules and for the consumer for what kind of options they want for.
  • Issues of data protection and data privacy can be put to root through our homegrown app store?
    • Today PayTM is a bank, only person to shut PayTM is the RBI which is the regulator of banking system.
    • Similarly for many strategies are regulated by multiple authorities and finally the court’s decided if a company should remain open your shut.
    • Google arbitral removing PayTM was superseding the authority of India and RBI. Many Indians have money in PayTM banks with suddenly don’t have access to it. Suddenly google has given a jotl that we have no control over an over destiny.
    • Health and fitness apps have been charged with 30% taxes, which will hit such companies. Due to the pandemic education and fitness based apps have signed during the lockdowns and Appstores are trying to cash in.
    • The challenge we have is the system does not respect our rules and regulations the laws the framework and will impose them over rules.
    • Example:- GOQii will be recently launching the FAUG game soon and we have a huge issue of more than 500 fake apps on google app store and to take down such fake apps.
    • All the app based companies don’t have Indian interest in their minds and diverting for their own profit interests.. We need to be sure that our digital assets are secure by law and governance.
    • This has become something similar to the East India Company which came in the guise of trade and ruled over the whole Nation
    • Unfair rules and policies changes needed by the government.
    • First thing to do is to make Google Play Store, Facebook, Apple Store, Twitter etc as public utilities and as government utilities the government will have a right to regulate them in India.
    • And keep all the data and information of all users in the data centers in India show that the government has access over that.
    • The democrats has submitted report in the US Congress that apps like Google and Facebook have deep conflict of interest. They spoke about apple and Google because they manipulate their conflict of interest. For example Google search if you pay more your site will come on the top. They show what anyone wants to see based on what amount they get. They do not see the interest of the consumer because for them it is business.  How to use such utilities for the benefit. For example, mobile phones and Telecom have become a public utility. Around 70 years ago when Telephone phones were created They were not a public utility later on it became a public utility.
    • It is necessary for the Nation’s interest and Consumers interest that we must have app store a which is made in India having a data Centre in India and also have right to redress and right to appeal. There must be a regulator which makes sure that there is no conflict of interest and ensure fair rules.
    • In addition, if Google wants to set up an App Store for India we can do so with clear set of rules also if Apple can.
    • Other app stores on a lot of money and hire the best employees and especially buyers and public activities.
    • PayTM is trying to have a new apps store rather than a full pledged store. Something we should have at par with Play Store or Apple Store.
    • The main reason for creation of new apps store was the condition that was put by Google was unfair to the local developers. The Play Store owners Google and Apple are themselves for developer and somehow they are also competing with the current apps and does the rules apply to such developers is unseen.
    • The aspect have been bundled with an Android handset, which clearly names all users dependent on Google Play Store. In any environment that apps are created it has to be embedded and it is not interdependent in nature.
    • Although PayTM has bought this new feature the dependency due to Foundation on which the ecosystem of the market is built the dependency goes to one particular stack and either of the case unless the fundamental players starts saying that we are open for other app stores. Apple has clearly said no Google said that they will allow in future and the how’s is not been cleared. There is a lot of Grey zone in the market today.
  • Can Paytm take over behemoths such as Google and what kind of support company like Paytm may get?
    • PayTM Is doing what is called as Super App strategy. Already millions of users are using PayTM for their payment requirement as well as e-commerce customers. While already lot of customers are already present they would like to discover other apps and services. It’s a great start, Google would not allowed them to become at App Store not because they can’t become but because they won’t allow because certain permissions are required from Google.
    • Zomato, Flipkart, Amazon, uber, swiggy who has huge amount of traffic can start this new App store.
    • This also goes with our Aatmanirbhar Strategy, by bulk most phones are Chinese. Once a major share of phones are made in India, we can start embedding Indian app stores into this. Samsung and Jio are also planning on for their own app stores.
    • Unless Google opens up its operating system which it does for its selective Partners.
    • The government has the IT Act very interestingly a court order to applications such as Facebook, Twitter and Instagram to remove any defamatory content and videos from all the platforms. None of them are complying to such orders, as they do not consider them intermediary and they just give add services. The problem is they want revenue and tax but when it comes to take responsibility and accountability the deny saying that we are just service providers only.
    • The government must take responsibility so that whoever earns revenue from India must be accountable for their actions. so that they do not manipulate the system and escape liability under Indian laws.
  • How to improve the ecosystem from the beginning stage?
    • First is to study and bring in and law. various acts such as competition act and democratic laws declare them public utilities.
    • Have national payment operation of India as a regulator. They need a content management process and lot of other Intricacies because the Indian user market is quiet huge.
    • There also must be an enquiry commission set up against monopoly over by a single company. In the Europe the regulators have penalized google heavily and us they want to bring up a anti-trust clause to open up the market. so globally the world has realize the threats of monopoly by such companies now it’s time of the Indian government.
    • The startup mere face one of the greatest problems that is lack of transparency. After an open model is the need of having certain and regulations and unlock the embedded market and free the competition in the market.
    • Gaming is not allowed by google and with as 30% revenue as tax will finish the gaming ecosystem. even though as a nurturing ecosystem standoff point we have to look at it through strategically point of view.

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