With Netflix, Spotify, and others bypassing Google's 30% cut of IAPs, Google now says all Play Store apps must use its billing system, giving a year to comply
Some companies like Netflix and Spotify had avoided making the payment when people paid for something inside their apps.
What makes this more than a policy refresh is who it targets: the biggest subscription apps are exactly the ones whose revenue is large enough that 30% amounts to real money, which is why Google's later move to pilot third-party billing starting with Spotify reads as a negotiated partial retreat from today's hard line.
First-order effects
Netflix, Spotify, and every other app that bypasses Google Play billing must integrate Google's payment system within a year or risk losing Play Store distribution — converting their avoided fees back into a 30% revenue cost on Android subscriptions.
If the pattern holds, the flat 30% rate gives way to per-partner deals: the Spotify pilot shows Google conceding 'user choice billing' for select players while keeping a service fee, pushing store economics toward individually negotiated take rates rather than one posted price — and inviting antitrust scrutiny of how those exemptions get assigned.
The trend: App-store payment rules are shifting from uniform mandatory billing toward contested, partially opened take-rate regimes where the largest developers negotiate exemptions and regulators set the boundary.
“Google said companies had until Sept. 30, 2021, to integrate its billing systems.” At least Apple won't be scrutinized alone anymore. https://www.nytimes.com/...
While lawyers argue about Epic Games v Apple and the App Store's 30% cut........ Google to enforce 30% cut on in-app purchases next year https://www.cnbc.com/...
Google is cracking down on companies that have not been paying the internet giant a 30 percent cut of purchases made inside apps downloaded from the Google Play store. https://www.nytimes.com/...
The difference with Android is that app makers, if they don't agree on business terms, can put up their apps on online venues other than the Play Store. https://www.rappler.com/...
As a carrot, Google is going to improve the process of installing 3rd party app stores. However as seen in other stories, Google's remedies for improving competition often end up falling short and I don't expect this to be any different. https://www.wsj.com/...
Wow. Big move from Google, v strong contrast to Apple Commits to making it easier to installs apps without using the Google Store, and even 3rd party app stores Also gives developers not complying with store payment terms a full year to comply, huge for COVID-related businesses h…
Google's response to @EpicGames: - @Android 12 will make it easier to use app stores - Google Play's Payments Policy for in-app purchases of digital goods isn't changing - 1-year grace period for developers who aren't complying until September 30, 2021. https://venturebeat.com/..…
From my understanding this decision will be left to OEMs, and not users. So you won't have some user installing the malware-laden 9Game as their default 3rd party app store https://twitter.com/...
Epic's compliant with Google was not that Google Play charged 30%. It was that Google essentially blocked it from becoming a true competitor for reasons like the one I mentioned above. Hard to install, blocked distribution deals etc... The real battle is with Apple.
Honestly, This isn't too different from what Google already offers with Android. Third party stores were always allowed, just harder to be installed as ‘trusted applications’. This is a good move overall though and will improve things for third party app stores. https://twitter.c…