API governance is the process by which an organization standardizes its API practices, enabling developers to build on previous work and connect applications more easily. It involves structuring API policies at various levels, including individual APIs and across the entire organization, to ensure consistency and security. Governance standards can include metadata formats, access controls, structural protocols, versioning, and security protocols, which help maintain the integrity of an API and make it easier for developers to work with. By implementing clear governance practices, organizations can improve performance, reduce integration issues, and provide a smoother experience for third-party applications.