Startups are considering the imposition of a Google tax as a strategy to garner public support against the tech giant's high fees.

The startup founders are considering implementing a 'Google Fee' or 'Google Tax' on their customers to offset the high commissions imposed by the tech giant. Google recently removed the apps of several major Indian startups, such as Bharat Matrimony and Naukri, for non-compliance with its new billing policy. The core issue revolves around the hefty 11-26% commissions charged by Google and concerns over third-party payment systems in its updated policy.

In response to Google's actions, Indian entrepreneurs are exploring innovative methods to resist. They propose imposing additional charges labeled as 'Google Fees' or 'Google Tax' on customers to highlight and oppose Google's User Choice Billing system. This initiative aims to garner public support and government attention.

The dispute stems from 2022 when the Competition Commission of India fined Google for abusing its market dominance. Google introduced the User Choice Billing system to address regulatory concerns, offering reduced commissions compared to the previous policy. However, startups argue that these commissions still significantly impact their businesses, particularly in India's price-sensitive market.

Numerous startups have filed petitions against the new policy, alleging it is a disguised version of the previous one. Despite ongoing legal battles, Google proceeded with app delistings, sparking outrage among Indian entrepreneurs who accuse Google of stifling competition and favoring its own growth.

Indian startups have publicly criticized Google's actions, with some contemplating legal action. They advocate for government intervention and propose establishing a state-backed app marketplace to challenge Google's dominance. Industry bodies have also condemned Google's unilateral decisions and called for the reinstatement of delisted apps.

As tensions escalate, the outcome of legal proceedings will determine the future of Indian startups' relationship with Google. The conflict has the potential to escalate into a crisis, impacting the entire digital ecosystem and the financial stability of affected platforms.