A Google spokeswoman said Paytm had been removed for violating its policies on online gambling.
Paytm, the dominant digital payments startup in India, accused Alphabet Inc.’s Google of violating competition rules after it removed the rival app from its Play Store on Friday for allegedly violating its gaming policies.
“You have one player that regulates India’s digital ecosystem, while competing with many companies in the same ecosystem,” said Madhur Deora, President of One97 Communications Pvt., Owner of Paytm. “They have all the levers and they can decide which application can be disabled and when, how is that not a problem?”
Google Pay is competing against Paytm backed by SoftBank Group Corp.- and Ant Group Co., which was last valued at $ 16 billion, making it the most valuable startup in India. The local payments company said it has 350 million registered users and reassured them in a blog on Friday afternoon titled “Your money is safe with us: The Paytm app for Android will be back on the Google Play Store shortly.”
The issue stemmed from a Paytm Cricket League contest introduced on Friday morning, which allowed users to win stickers with their favorite cricketers and then win cash for every five stickers collected. Paytm has had a “Scratch and Win” promotion in its app from the start and, like many of its rivals, including Google Pay and Amazon Pay, it attracts users with cash-back promotions.
The latest episode between Google and Paytm, staunch rivals competing for users, merchants, and market share, illustrates competition in India’s rapidly expanding digital economy. The nation’s digital payments market is forecast to exceed $ 1 trillion by 2023, according to Credit Suisse, even as more rivals, including Facebook Inc’s payments service WhatsApp, seek to compete.
“Google has a monopoly on their Play Store and this is a very random action that they have taken against Paytm,” said Satish Meena, senior forecast analyst at Forrester Research Inc. the powers of Google, especially in areas where Google itself is a competitor. “
A spokeswoman for the US search giant said the app had been removed for violating its policies on online gambling.
“We do not allow online casinos or support unregulated gambling applications that facilitate sports betting,” the search giant said on its official Indian blog. “This includes if an application takes 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.” He declined to comment on the specific Paytm charges.
Deora said Paytm’s five-sticker set was straightforward and no more of a gambling opportunity than Google Pay’s cash-back promotions. If India wants a flourishing digital ecosystem, no player should have such inordinate power, he said.
“They are the judge and the jury,” Deora said. “It can’t be both.”
(Except for the headline, this story has not been edited by NDTV staff and is posted from a syndicated channel.)
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