Google Wants Developers To Pay 30% Of In-App Purchases, To Make Guidelines Stricter

Tajammul Pangarkar
Tajammul Pangarkar

Updated · Sep 30, 2020

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Google is serious about its Play Store policies. The tech giant wants strict adherence to its guidelines. To ensure that the developers abide by the Play Store rules, the company has decided to updates its guidelines. The measure is aimed at preventing the developers from circumventing its policies that cost the company. Just like Apple, Google also wants the developers to share a handsome ratio of in-app purchases via its Play Store. The company is aiming 30 percent share of all such purchases from the developers made via its platform. Apple too charges developers 30 percent from purchases made through the App Store.

Google’s decision comes in the wake of developers managing to evade its guidelines for in-app purchases. While this rule was in place for years, developers managed to circumvent it. Top developers like Netflix, Epic Games, and Spotify Technology were among others that were not giving the company a cut of in-app purchases. Developers were able to bypass Google’s policy by allowing consumers to pay directly using their credit card for service. When customers make payments through their Play Store account, the company gets a fee. But when payment is made directly using a credit card, the company was not able to get a fee.

Google said that it will take action against the developers if they fail to comply with its rule. The company said that it will not immediately take coercive action against the developers instead give some time to update their system to comply with its rule. Both Google and Apple have some requirements that developers need to meet for in-app purchases. The companies generate billions of dollars through such purchases and eventually contribute to their profits. Notably, Apple’s policy in this regard is quite stricter than Google. The company often invites criticism from developers for this. Apple bars developers from redirecting users to subscribe to services from outside. Google’s move to implement its rule strictly is likely to become the latest flashpoint between developers and the company.

Tajammul Pangarkar

Tajammul Pangarkar

Tajammul Pangarkar is a CMO at Prudour Pvt Ltd. Tajammul longstanding experience in the fields of mobile technology and industry research is often reflected in his insightful body of work. His interest lies in understanding tech trends, dissecting mobile applications, and raising general awareness of technical know-how. He frequently contributes to numerous industry-specific magazines and forums. When he’s not ruminating about various happenings in the tech world, he can usually be found indulging in his next favorite interest - table tennis.