Google’s threat sends Australian startup Unlockd into Bankruptcy

An Australian software vendor, Unlockd  has entered into bankruptcy (voluntary administration) following a battle with Google. In a statement, the startup explained its move

Following an unanticipated threat from Google earlier this year to remove Unlockd’s apps from the Google Play Store ecosystem and deny access to its ad server Admob, Unlockd was forced to place its planned ASX IPO on hold and take a stand to protect the business, shareholders, partners and importantly 330,000 monthly users to whom this action would cause irreparable harm and disruption.

… the ramifications of Google’s actions have had and continue to have a deep impact on the business when considering the valuation of Unlockd prior to these threats and the postponement of the planned IPO, which would have fueled the continued growth and expansion of the business. As such, we have not been able to secure the capital we had expected to replace the IPO and therefore have been left no choice but to move into voluntary administration.

Unlockd is alleged to have breached a Google Play policy, which prohibits mobile apps from interfering with the functions of a mobile device, or another app. Google’s spokesperson disputed Unlockd’s version of the facts.
“We explained our concerns to Unlockd, outlined how they could fix the problems or use alternatives, and gave them time to make changes,” the spokesperson said.

The reactions to this announcement were mixed, as the tweets highlight

 

 

Leave a Reply