CEO of Shaadi.com Anupam Mittal accuses Google of being a 'Digital East India Company' over ‘Google Tax’

In a scathing critique of tech giant Google, the CEO of Shaadi.com Anupam Mittal has likened the company's practices to those of the historical East India Company, alleging that Google's dominance in the digital marketplace is akin to a modern form of colonialism. In an interview with CNBC, the CEO highlighted the pervasive issue of what he termed the "Google Tax," a levy imposed on startups ranging between 20 per cent to a staggering 50 per cent. According to him, this tax is not just for distribution but is aimed at safeguarding the brands of these startups from competitors.

“This is a big issue right, and Google will try to make light of it because that's what monopolists generally do," he remarked. "The playbook is very simple; it's kind of like a dictator leadership where you first fight for the people, then you kind of usurp everything possible in your wake, and then you start working against the exact same people who made you what you are.”

The CEO elaborated on Google's strategy, citing the company's attempts to charge between 15% to 30% of any app's revenue downloaded from their Play Store. This is in addition to the substantial revenue already garnered through advertising, with Google reportedly securing 20 to 50 per cent of most digital companies' earnings in India due to their hold.

He condemned Google's tactics, citing how the company manipulates search results to showcase competitors' brands when users search for specific companies, leading these entities to bid against their own brands for visibility.

The CEO expressed concerns about Google's latest move, the Google Play Billing System (GPB) or UCB (Users Choice Billing), stating that the alterations seem cosmetic and an attempt to evade legal scrutiny. Under these changes, apps downloaded from the Play Store may face additional charges ranging from 11 to 29 per cent of their revenue, based on categories and services used.

He labelled this approach as an attempt by Google to force app developers to use their services, creating an unfair advantage by imposing fees significantly higher than the actual cost of the services provided.

Many startups pay anywhere between 20-50% as Google Tax to get distribution & protect their own brand from bidders. It’s the Digital East India Company 😥 https://t.co/XgzQcqhtuk

The CEO drew a historical parallel, likening Google's practices to the colonial exploitation by the East India Company, highlighting the urgency for intervention by regulatory bodies. He mentioned the Competition Commission of India (CCI) imposing penalties on Google's app billing system, only for Google to allegedly rebrand and continue the same practices. Amidst the ongoing legal battles, he raised concerns about the fate of smaller startups, emphasising that while the government has taken notice, the impact on Google's vast resources might delay swift justice.

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