Recently Paytm received the covert support of Indian government to fight the monopoly of tech conglomerate Google. The need of developing an indigenous app store was felt when Google declared its new policies on in-app purchases. It said that for exchange of digital goods using its app store, it would levy 30% commission on in-app purchases. However, as of now, Google has suspended this practice. Nevertheless, a group of Indian app creators decided to challenge Google’s monopoly. To this end, Paytm decided to develop its mini app store and has persuaded about 300 developers to list their apps on it. On October 8, it offered a demo of its app store.
Nevertheless, its success rests on its ability to divert users from Google’s Play. However, the government has little to do. According to some analysts, even the support of government won’t help the local players much. There are couple of reasons for this – first reason is that players such as Apple and Google have their own operating system. This makes their app stores fascinating to users to grow. When it comes to local players, in the absence of an operating system, they will be helpless in fighting global tech majors. The second reason is that the operating systems help them to build a range of products and services. This helps them acquire leadership position in their corresponding segments.
Apart from this, Google is not only big in the app market, it is a big player in the payments business also with its Google Pay. Apart from this, Google Play has around 94% market share in India. It accounts for 360 million unique visitors. On Play store, Google has 3.4 million apps while Apple has 1.7 million apps on Apple app store. Google has 0.8 million developers while Apple has 1.3 million developers.
Courtesy- Financial Express