Google will apply a 30% cut on in-app purchases next year


The CEO of Alphabet makes a beautiful gesture during the annual meeting of the World Economic Forum (WEF) in Davos on January 22, 2020.

(Photo by Fabrice Cofrey / AFP) (Photo by Getty Images Fabrice Cofrey / AFP)

Google said Monday it would enforce rules for app developers to distribute Android software on the Google Play Store to use the payment system in its app.

The move means developers will have to use Google’s billing system by September 30, 2021, instead of independent payment systems, which charge a 30% fee on payments. The announcement brings Google Play’s policies into line with Apple’s App Store policies, which have come under pressure from developers and regulators on a number of issues, including its own 30% cut.

Apple has argued against its app store testing that other app stores like Google Play also charge a 30% fee from app purchases.

Google’s current policy states that developers must use Google’s billing system when purchasing an app within the Google Play Store, but it was not implemented, Google said in a blog post on Monday.

Google does not name applications that leave the rule. He said 97% of developers who sell digital goods adhere to its policies. Netflix and Spotify prompt users within their Android apps who use credit cards to pay directly.

“We want to make sure our policies are clear and up-to-date so that they can be consistently and fairly applied to all developers, and so we’ve made it clear in our payments policy that all apps sell digital goods in their apps.” The system needs to be used, ”Google said in the announcement, signed by VP of Product Management, Sameer Samat.

Epic Games, the maker of Fortnight, updated its Android software in August Gust to allow gamers to pay directly to Epic for purchases of digital goods such as colorful outfits in an app that rejected Google Play billing.

Google responded by removing Fortnight from the Play Store. “Although Fortnite is available on Android, we can no longer make it available on Play because it violates our policies,” Google said at the time. Epic Games sued Google.

Apple Play also removed Fortnight from its App Store and got involved in its own legal battle with Epic Games.

Google’s Play Store doesn’t attract as much attention as Apple’s App Store

Although its policies are similar to those of Apple Pal, Google has received significantly less attention than Apple Pal, with a 30% cut.

One of the main complaints from Apple Pall developers is that Apple takes 30% of the digital purchases made in the Pall app, which can hamper services like Spotify, which have significant costs associated with their services, such as music rights.

Allows Android users to install apps without using the Play Store, including apps that distribute other apps like Samsung’s Galaxy App Store, the company noted in its Monday blog post. But, the Google Play Store is where most users download the app on Android phones.

Google hasn’t taken as much heat on its app purchases.

Developers, including Epic Games, Spotify and Tinder Parent Company Match, have formed a for-profit group to challenge Apple’s App Store practices, for example.

And, when Summer CEO Tim Cook testified before the House Judiciary Subcommittee on antitrust this summer, he answered specific questions about which apps Apple allows on its platform and how it uses its power to deter small developers.

When Google CEO Sundar Pichai testified at the same hearing, he was faced with questions about Google’s role in advertising, search and data collection, instead of how much Google charges app-makers for using the Google Play Store.

Google said the Android release next year would “make it easier for people to use other app stores” without compromising user safety.

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