Warning for Arattai App: US Listing Might Invite Regulatory Risks; Check Details

Cybersecurity expert Prashant Mali warns about the significant risks for Indian apps, like Arattai, that list a US address on app stores. This practice can lead to serious legal, financial, and regulatory consequences.

Advocate Dr Prashant Mali, a well-known expert in cybersecurity, cyber law, AI, and data protection, recently raised some important questions about Indian apps listing themselves with US addresses on Google Play and Apple App Store. His focus was on the Arattai App, which declares a US address, even though it is developed in India.

Mali asked, “Is it under US control? And what does that mean for Indian developers?” He explained that while it may seem harmless to provide a US address, it can have serious legal and financial implications.

Why a US Address Matters

When an app is listed on Apple or Google’s stores, developers agree to the platform’s terms and conditions. By giving a US office address, Indian developers automatically fall under US law. This could mean compliance with US export rules, consumer protection laws, and even oversight from the Federal Trade Commission (FTC).

Export Controls and Sanctions

Mali highlighted that US export control rules are strict. If the app is linked to a country under US sanctions or if geopolitical tensions rise, Apple or Google might have no choice but to suspend or remove the app. Similar actions have been taken against apps from Russia, China, and Iran, not because of their quality but due to regulatory compliance.

Taxes and Legal Obligations

Listing a US address can also create tax complications. Revenue processed through US channels could trigger IRS or state-level taxes. Developers might even face double taxation unless their operations are structured under India-US tax agreements.

Consumer Laws and Liability

A US address makes the app look like a local US business. That means any dispute—whether it’s about privacy, children’s data, or misleading practices—can lead to lawsuits. Class-action cases are a real risk.

App Store Control

Apple and Google can remove apps for policy violations, government requests, or national security concerns. If there’s a geopolitical flare-up, apps could be blocked in India or completely removed from stores. Any mismatch between the declared US address and actual operations may also be considered misrepresentation, which can lead to account suspension.

The Safer Approach

Mali advises developers to be transparent about their Indian base. If a US presence is desired, it should be established as a proper legal entity—not just a mailing address. Doing so can help avoid legal headaches, sanctions, and unexpected app removal.

In short, while a US address might seem like a shortcut to global credibility, it can expose Indian apps to a web of legal, financial, and regulatory risks. Transparency and proper structuring are the keys to staying safe while going global.