Row erupts as Google drops Paytm from app store, then brings it back

Row erupts as Google drops Paytm from app store, then brings it back

Digbijay.Mishra@timesgroup.com

Bengaluru:19.09.2020

High drama unfolded on Friday afternoon as Google removed mobile payment app Paytm from its Play Store, citing breach of its gambling restrictions, before bringing it back again by evening. Paytm’s fantasy gaming application was also removed ahead of the start of the IPL on Saturday, and was not back till the filing of this report.

The removal of Paytm, which takes away the ability to get new users, elicited widespread disapproval among India’s startup ecosystem as the tech giant’s unit Google Pay competes with it in India.

Paytm founder Vijay Shekhar Sharma, who said Google was acting like “judge, jury and executioner”, told TOI it was notified in the morning that app was being taken down due to a cricket sticker promo on payments it was running. In the promo, a user who collects five stickers gets a cashback.

‘Google misusing its influence on internet eco’

Many such schemes run across other payment platforms as well. It had also received warnings for promoting Paytm First Games, a sports fantasy platform, on its main application thrice. As Paytm’s app was taken down, Google, without naming Paytm, said in a blog post that it doesn’t allow online casinos or support any unregulated gambling apps that facilitate sports betting. “This includes if an app leads consumers to an external website that allows them to participate in paid tournaments to win real money or cash prizes, it is a violation of our policies,” the US-based internet search giant said. Other online fantasy platforms like Dream11, MPL and My11Circle have also not been available on Google’s Play Store for the last couple of years due to its policy.

Sources said Google’s action was led by Paytm promoting its fantasy gaming unit though its main app. “They (Paytm) were promoting links of Paytm First Games within the main Paytm app. If you click on it, it will take you to the fantasy gaming platform of Paytm, which includes betting. That’s not allowed as per Play Store policy. That's why the app had to be taken down," a person close to the development said. While betting is not allowed in India, various state high courts have called fantasy sports a game of “skill” and not of “chance”, making it legal as of now.

But even as Google does not allow fantasy gaming apps on its app store, these platforms are allowed to advertise on its search engine, which several experts have pointed out as contradictory policy.

The development for Paytm First Games came at a critical time as it has outlined a Rs 300-crore marketing and advertising budget for the next 12 months, starting with IPL. Removal from Google Play Store blocks its main channel to acquire new customers.

Many in the startup ecosystem have questioned if Google’s moves are indicative of misusing its influence on India’s internet economy. Unlike markets like the US where Google’s Android and Apple’s iOS have equal market share, in India the former rules with 90-95% share of smartphones.