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Although the commission system for Apple’s app store is receiving serious criticism, Google seems to be heading in the same direction. The company announced that it will update its guidelines next week. Google is emphasizing that developers must use the in-app purchase system and subscription services from their app store. In the new guidelines, Google clearly requires that most apps use Google’s paid services for in-app content downloads, game updates, and subscriptions. This system allows the company to receive a commission of 30% of purchases within the application on Android.
Although this requirement has been around for many years, many developers, including Netflix, Spotify, Match Group, and Epic Games, have overlooked the system. The Netflix and Spotify apps urge consumers to pay by credit card instead of their app store accounts, bypassing Google’s commission. Last year, Match Group’s dating app Tinder also introduced a similar checkout process.
Recently, Epic Games began allowing players to purchase in-game updates for their “Fortnite” video game through direct payment. In response, both Google and Apple removed Fortnite from their app stores. Subsequently, Epic Games filed antitrust lawsuits against the two tech giants.
Developers will have time to update their applications
When Google’s updated guidelines are rolled out, developers who do not currently meet the requirements will have time to update their applications. However, if they don’t update their apps, they will probably be out of the Play Store.
A Google spokesperson said in a statement: “As an open platform, Android allows multiple app stores to run. In fact, most Android devices have at least two pre-installed app stores and users can install other stores. For choosing to use the Google App Store… our policy has always required you to use Google’s billing system for in-app purchases. We have been working with partners to clarify these policies and ensure these policies are implemented fairly and reasonably. ”
App store commissions generate billions of dollars in revenue for Google and Apple each year. However, many developers complain that it is an unfair and unnecessary tax. The Apple App Store requirements for in-app purchases and billing are the same as Google’s. However, Apple’s rules are stricter than Google’s. Apple doesn’t allow developers to direct users to external websites to subscribe, but Google does.
Earlier this week, many application developers announced the establishment of the “App Fair Alliance.” This non-governmental organization seeks to promote a fairer app store policy. After criticism from developers and legislators, Apple recently relaxed some app store guidelines and Google plans to make other changes to its rules soon.
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