Blog / Tech News Review / Mobile App

Google Play Will Charge a 30% Commission On All Apps From Next Year

  • Rating — 5 (1 vote)
  • by Ksenija Kolomiiets
  • Updated on September 30, 2020
  • Read —
    2-3 minutes

Google’s new billing policy on Google Play has sparked heated debate today among developers and companies promoting their services and products through apps. The bottom line is that previously, developers could make sales through their applications using third-party financial services. From September 30, 2021, such transactions will have to go through the Google billing system. This approach will affect the percentage of developers who do not currently use the Google Play payment system when selling digital goods in their apps.

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The company also announced that it would be making Android 12 changes that will make it easier for users to install and use third-party app stores as an alternative to Google Play.

Google says that as of today, only 3% of apps on Google Play do not use the Google Play payment library. In other words, a small percentage of applications need to be updated to meet new conditions.

The company also promises to provide some businesses whose businesses have suffered from the pandemic 12 months grace period. To a greater extent, this applies to those businesses that have moved their previously physical services online, for example, live broadcasts.

Like Apple, Google will charge a 30% commission on in-app purchases.

Google also said it would not limit developers’ ability to communicate with customers, including alternative payment methods, unlike Apple.

According to Bloomberg forecasts, this could significantly reduce the number of purchases of applications in the Play Store.

The Google Play policy change is not just a whim of Google, but a response to increased regulatory requirements for its Android mobile platform by the US government. Recall that not so long ago, the US Antimonopoly Committee underwent investigations to determine whether the current tech giants are abusing their power for anticompetitive business practices.

The problem of the whole situation is that app stores have become one of the most potent ways for developers to distribute mobile consumers’ applications. These app stores also order many of the apps they distribute, even if the platform manufacturer is offering a competing product. For example, stores distribute alternative music streaming services such as Spotify and receive a portion of the subscription revenue.

Even though the company claims that the rules apply equally to all apps distributed on Google Play, including Google’s apps, so far, companies that have applications for Google Play are not happy with the changes.

Recall that earlier, and Apple introduced new rules and standards for applications, which was also greeted by the audience with disapproval.

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Does your digital solution need an upgrade according to the new Google policy?

As a mobile development company, we cannot but agree with the forecast for a decline in sales through Google Play. After all, Google has always been considered more loyal and developer-friendly. We understand that all this was done under the pressure of particular circumstances. Now, to adapt, it is imperative to implement the Google billing system into your solution. If you need to upgrade your mobile solution, then you can safely contact us. Our company develops applications from scratch and is also ready to provide technical support for ready-made solutions.

 

Ksenija Kolomiiets Expert & Evangelist in business optimization tools like fintech, logistics, on-demand services apps who will help you to understand the core ideas of the outlined themes by my articles. I also have great expertise in social media and education platforms so let me know "in comments" if you want me to describe a theme you're interested in.

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