Shaadi.com CEO Anupam Mittal Deems Google As ‘Digital East India Company,’ Here’s Why
Anupam Mittal, the CEO of Shaadi.com, criticized Google, comparing its practices to the historical East India Company. Mittal claimed that Google’s dominance in the digital marketplace shows modern colonialism, with startups paying a hefty “Google Tax” of 20-50% for distribution and brand protection.
During CNBC interview, the CEO highlighted a significant concern referred to as the “Google Tax,” describing it as a fee imposed on startups ranging from 20% to a significant 50%. According to him, this fee isn’t solely for distribution but is intended to protect the brands of these startups from competitive forces. The CEO expressed the view that Google downplays this issue, likening their approach to that of monopolists who follow a predictable playbook akin to a leadership shift from advocating for the people to working against them.
“This is a big issue, and Google may downplay it, as monopolists often do,” he noted. “The strategy is straightforward; it’s akin to dictatorial leadership, where you initially advocate for the people, then acquire everything possible, and eventually work against the same people who contributed to your success.
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The CEO detailed Google’s approach, pointing out the company’s efforts to levy fees ranging from 15% to 30% on the revenue of any app downloaded from their Play Store. This comes in addition to the significant income generated through advertising, where Google reportedly claims 20% to 50% of the earnings of most digital companies in India due to their dominant position.
He criticized Google’s methods, highlighting how the company manipulates search results to display competitors’ brands when users search for specific companies. This manipulation leads these entities to bid against their own brands for visibility.
Expressing reservations about Google’s recent move, the Google Play Billing System (GPB) or UCB (Users Choice Billing), the CEO stated that the changes appear cosmetic and may be an attempt to avoid legal scrutiny. Under these modifications, apps downloaded from the Play Store could face additional charges ranging from 11% to 29% of their revenue, depending on categories and services used.
He called this approach as an attempt by Google to force app developers to use their services, giving them an unfair advantage by imposing fees significantly higher than the actual cost of the services provided.
