Most of the apps are downloaded from Google Play and Apple Stores who earn a sizeable cut, running into billions of dollars. That is the sheer dominance of app platforms of the two tech giants. It takes away the earnings of the app developers or vendors by forcing them to use the payment system of the tech giants. Google and Apple too can have app offerings which compete with others in some areas. South Korea legislated to prevent the usage of their payment systems.

Google did some damage control by slashing its commissions on subscriptions-based apps to 15 per cent, instead of 30 per cent for the first year. Commission rates could come down to 10 per cent for apps that participate in its Play Media Experience programme. Non-Google, non-Apple payment systems, however, charge just 1-2 per cent commission.

App startups resist the monopolistic tendency. However, jurisdictions like Europe allow downloading apps from internet, outside the app stores — this is called side-loading. Microsoft has kept low commission rates — just 5 per cent.

Dictating terms to app makers by the stores has gate-keeping effect. It becomes a matter of survival for small developers.

App stores should follow the doctrine of fairness, rather than the benevolence shown by slashing the rates. The commission should be left to the market forces.

India can think of suitable legislative measures to benefit both the stores and developers. It should address the anti-competitive practices and focus on user privacy.