Google Following Apple’s Lead On In-App Revenue

Word in the tech world is that Google is taking a play out of Apple’s book and upping the ante.  Much like Apple recently adjusted the terminology when it came to the developers and what was expected on the IOS platform, now comes word that Google has done the same.

Google, a subsidiary of Alphabet Inc, is aiming for the pockets of those developers on its Google Play platform.  It wants said developers, who already offer purchases within their apps, to use Play Store’s in-house payment system.  With the systems exclusive use, Google will be able to get a cut of 30% of any money the developer’s games take in.

Now, many are probably wondering—what happened?

The tech giant, led by Sundar Pichai, stated in a recent blog post that those developers that chose to remain on Google Play are going to be expected to “pay a service fee from a percentage of the purchase.”  As per the conditions of being on the platform, the majority of current developers are already utilizing the billing system connected with Google Play.

In a statement released by Google, “less than 3% of developers with apps on Play reportly made digital sales over the last 12 months, and of this 3%, the vast majority (nearly 97%) already use Google Play’s billing.”

The tech giant has issued a warning that all developers have until September 30, 2021, to make any and all updates to their app and come into compliance with the required billing policies.

The reason that all this even matters boils down to the fact that, in a recently published report by the New York Times, Google Play Store is said to garner a 30% cut from all in-app purchases.  Two current developers on the platform have figured out a way to skirt around the policy.  Instead of the California-based tech giant getting a percentage of their in-app purchases, both Netflix and Spotify allow their users to use a credit card and pay them directly.

As many may recall, Apple and the developers of Fortnite, Epic Games, got into a heated war of words that took them to the court of public opinion.  Joined by other developers such as Match Group and Spotify, Epic Games has joined up with the Coalition For App Fairness.  The fairness coalition was formed in an effort to try and get the Cupertino-based Apple to consider making a change in its current policies.

Epic Games took its battle with Apple, as well as Google, to the courtroom.  All three are currently in litigation after Epic Games had its massively popular game Fortnite removed from both of the company’s app marketplaces.

All of the recent news of the battle between the tech giants has not gone without an effect.  Class A shares of Alphabet closed up 1.4% on Monday, with a further 0.4% rise in the after-hours session.  The same day, Class C shares rose 1.35% higher and also gained 0.4% in the after-hours session.

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