Google plans to start taking it's 30% cut from all in-app purchases

[lazypc]

Summary

 Google plans to start enforcing it's policy requiring all in-app purchases on Play Store apps use Google's in-app payment processing and give Google it's 30% cut.

 

Quotes

Quote

 

Google announced in a blog post today it’s plans to start enforcing it’s policy regarding requirements for app developers distributing Android software on the Google Play Store to use its in-app payment system.

 

When the Apple vs Epic Games battle started, it was assumed that Google was only forcing game developers to adhere to using it’s in-app payment system and give Google it’s 30% cut since apps like Netflix and Spotify have had direct payment methods in their respective apps for a long time running. However it seems that Google had just been lax in enforcing the policy and plans to start doing so.

 

Developers have until September 30th, 2021 to get their apps compliant with this policy, which is the only bright point in this whole situation. That should give developers time to modify their apps if they wish to do so, or come up with alternative plans should the 30% cut Google intends to take be too much for that situation.

Alphabet CEO Sundar Pichai gestures during a session at the World Economic Forum (WEF) annual meeting in Davos, on January 22, 2020.

 

My thoughts

I find it hard to believe that Google is just now catching onto apps like Netflix and Spotify having direct payment methods in their apps, especially with how quick Fortnite was pulled down after adding their own payment method.

So my guess is that Google is banking on Apple winning the Apple vs Epic Games battle over in-app payments, that way they can cash in on profits they are missing out on now. Which would also mean that year before enforcement is just as much for the legal battle to play out as much as it is for developers to prepare for the "change".

 

I do have empathy for the team over at Floatplane though, with all the hell they just went through trying to get Floatplane on iOS this is probably the last thing they need. But at least they have a year, and although they could de-list and go the APK sideload route. Maybe Google will just be a little more lenient about directing people to subscribe through the website, even if it is just written instructions and not full blown links.

 

Sources

 https://www.cnbc.com/2020/09/28/google-to-enforce-30percent-cut-on-in-app-purchases-next-year.html

https://basictech.tips/2020/09/29/google-plans-to-enforce-30-cut-on-all-in-app-purchases/

https://android-developers.googleblog.com/2020/09/listening-to-developer-feedback-to.html

[lazypc]

I forgot to mention that I absolutely love that the title of Google's Blog article announcing this is "Listening to Developer Feedback to Improve Google Play"

[lewdicrous]

RIP Floatplane...

[TheCoverUp]

I smell another lawsuit coming in..

[That Franc]

At least you can still sideload apps on Android, but it's an unwelcome development regardless of anything. If things keep going in that direction, buying a Linux phone might become a much better option than it is right now.

[BlueChinchillaEatingDorito]

22 minutes ago, lazypc said:

My thoughts

I find it hard to believe that Google is just now catching onto apps like Netflix and Spotify having direct payment methods in their apps

I think with those two apps in particular, I don't see where mobile payment options is really relevant. At least everyone else I've known who has signed up for these services, they've all setup autopay directly on the website from their laptops or desktops. I don't think I've ever seen anyone sign up for Spotify or Netflix on a phone to tablet. Now that's not to say those people don't exist, I just don't think the majority of the revenue Spotify or Netflix is getting comes through that manner. And as such, wouldn't affect them that much. 

[RejZoR]

Everyone was screeching how Apple is/will get their ass whooped by whole Epics drama and then Google is joining in on the exact same thing. Yeah, no. Good luck Epic, there just isn't any way you're winning any of it. Said so before for Apple and I'm saying the same for Google. It's their store after all. However, things are a bit different here. With Apple, I could defend their decisions with "Their device, their OS, their app store". Google doesn't have that luxury. Sure, it's their app store, but only Pixel is their phone and we can't really call it "their OS" coz all Android phone makers bolt their stuff on top yet always come preloaded with GooglePlay. So they can't really go by the "it's our everything so we can do whatever we want". Only Apple has that luxury.

 

I didn't find installing of APK's particularly annoying or complicated, you just had to visit the webpage of the app store like APKPure, OS asks you if you trust the APK and it was quickly installed. At least on Xiaomi with MIUI there weren't any particular extra steps or complications. MIUI even has antivirus scanner which checks APK before installation which is a nice MIUI touch. You're still not getting apps like Netflix from those.

 

Maybe we're looking upon new times where every service will offer APK directly. Like for example, if you'll visit netflix.com you'll be able to download their APK directly bypassing all Google's "taxes". Or there will be a new "coalition" that will form some sort of OpenAppStore where companies will bunch together and make their own app store that has no general tax and will operate on basis of you're there, everything you earn is your profit. And they'll only somehow cover the operational costs of running the thing. Once something like this happens however, there are good grounds to counter Apple's strict "our app store only" policy. It's still their entire ecosystem so I have no idea if it would be enough to force them into goint he same way...

[givingtnt]

I mean.. it's technically no longer an Apple monopoly then..

[lazypc]

10 minutes ago, BlueChinchillaEatingDorito said:

I think with those two apps in particular, I don't see where mobile payment options is really relevant. At least everyone else I've known who has signed up for these services, they've all setup autopay directly on the website from their laptops or desktops. I don't think I've ever seen anyone sign up for Spotify or Netflix on a phone to tablet. Now that's not to say those people don't exist, I just don't think the majority of the revenue Spotify or Netflix is getting comes through that manner. And as such, wouldn't affect them that much. 

I agree that it probably is a minority in our tech community.

 

There are a lot of people who don't own smart devices other than their phone, with maybe a fire tv, or a gaming console at home. Like my kids!!! lol. Even though they have had access to a windows computer their entire teen life, they choose to just use their phone for a majority of their content consumption, and they both have Spotify premium on iOS, but use the family Netflix account.

 

I guess that could make it a generational trend as well.

[lazypc]

Just now, givingtnt said:

I mean.. it's technically no longer an Apple monopoly then..

Big Oof..

[BlueChinchillaEatingDorito]

4 minutes ago, RejZoR said:

Everyone was screeching how Apple is/will get their ass whooped by whole Epics drama and then Google is joining in on the exact same thing. Yeah, no. Good luck Epic, there just isn't any way you're winning any of it. Said so before for Apple and I'm saying the same for Google. It's their store after all. However, things are a bit different here. With Apple, I could defend their decisions with "Their device, their OS, their app store". Google doesn't have that luxury. Sure, it's their app store, but only Pixel is their phone and we can't really call it "their OS" coz all Android phone makers bolt their stuff on top yet always come preloaded with GooglePlay. So they can't really go by the "it's our everything so we can do whatever we want". Only Apple has that luxury.

Google also doesn't have the luxury of saying they actively scan their appstore for malicious applications because well... they don't really. It's a free for all which results in pages and pages of apps that is just malware and/or completely fake. Apple has the luxury of saying that 30% contributes to quality control, Google doesn't have...quality control.

[BlueChinchillaEatingDorito]

1 minute ago, lazypc said:

I agree that it probably is a minority in our tech community.

 

There are a lot of people who don't own smart devices other than their phone, with maybe a fire tv, or a gaming console at home. Like my kids!!! lol. Even though they have had access to a windows computer their entire teen life, they choose to just use their phone a majority of their content consumption, and they both have Spotify premium on iOS, but use the family Netflix account.

 

I guess that could make it a generational trend as well.

I mean time will tell where that trend is heading. But at least for our generation, Apple and Google aren't getting a cent from Spotify or Netflix because well most of us began using those services on the computer. So for your kids, yea, none of us can be sure on how they will approach this when they're old enough. But in terms of the current legal battle, I think it's more centered on microtransactions for games. These subscriptions for third party services aren't really contributing a whole lot to Google and Apple's bottom line. 

[lazypc]

3 minutes ago, BlueChinchillaEatingDorito said:

I mean time will tell where that trend is heading. But at least for our generation, Apple and Google aren't getting a cent from Spotify or Netflix because well most of us began using those services on the computer. So for your kids, yea, none of us can be sure on how they will approach this when they're old enough. But in terms of the current legal battle, I think it's more centered on microtransactions for games. These subscriptions for third party services aren't really contributing a whole lot to Google and Apple's bottom line. 

The just want all that floatplane money 

[BlueChinchillaEatingDorito]

1 minute ago, lazypc said:

The just want all that floatplane money 

Guess @Slick is going hungry for the next little bit. Sorry Luke.

[lewdicrous]

15 minutes ago, givingtnt said:

I mean.. it's technically no longer an Apple monopoly then..

Oligopoly ftw!

[Mihle]

As Google was sued too, I think this is more of a:
"How dare you sue us over that, get this!" kind of move.

[Video Beagle]

1 hour ago, Mihle said:

As Google was sued too, I think this is more of a:
"How dare you sue us over that, get this!" kind of move.

I mentioned elsewhere, lots of business happens in grey areas...Lawsuits cause light to shine in those areas and the become defined as black and white.  Epic's been trying to play the white knight for developers in all of this, though we all know it's only about they want they're own app store rather than any kind of championing the little guy....well, Epic's spotlight just hurt a lot of little guys who've been doing fine in the shade.

 

(metaphor kinda got away from me there)

[Mark Kaine]

4 hours ago, lazypc said:

I forgot to mention that I absolutely love that the title of Google's Blog article announcing this is "Listening to Developer Feedback to Improve Google Play"

Thanks, Timmy "good guy" Sweeney!

[TetraSky]

?????? Of all the possible time to announce this crap, Google choose now when Apple vs EPIC (and others) is happening because of their 30% cut (and other behaviors)...

 

Well, at least the good thing with Android, is that you can easily install an app outside of the store and there are many third party stores (so far, could very well change in the future).

 

 

I have read the first article, but it didn't answer my question on this. Does Google do the same as Apple? As in, preventing any and all mention of paying less off the app on your website and stuff like that?

Can a developer have not only Google Play billing processing, but their own as well in the app, with different pricing to reflect the lack of the 30% cut?

[Doobeedoo]

Fun times, quite a show this will continue to be. 

[lazypc]

1 hour ago, TetraSky said:

?????? Of all the possible time to announce this crap, Google choose now when Apple vs EPIC (and others) is happening because of their 30% cut (and other behaviors)...

 

Well, at least the good thing with Android, is that you can easily install an app outside of the store and there are many third party stores (so far, could very well change in the future).

 

 

I have read the first article, but it didn't answer my question on this. Does Google do the same as Apple? As in, preventing any and all mention of paying less off the app on your website and stuff like that?

Can a developer have not only Google Play billing processing, but their own as well in the app, with different pricing to reflect the lack of the 30% cut?

They couldn't have their own payment processing in the app alongside Google's. Or, they won't be able to in a year anyways.

 

But I don't know about mentioning going to a website outside of the app to make direct payments. Since this has just now come up I think it will be something developers will want to clarify with Google, and I am hoping Google is lenient in that regard. Since my hope for Floatplane is that even if they cannot do direct payments or subscriptions inside the app, they can at least instruct users to go to the website for payments, but still be able to watch creators they subscribe to in app.

[AlTech]

7 hours ago, BlueChinchillaEatingDorito said:

I think with those two apps in particular, I don't see where mobile payment options is really relevant. At least everyone else I've known who has signed up for these services, they've all setup autopay directly on the website from their laptops or desktops. I don't think I've ever seen anyone sign up for Spotify or Netflix on a phone to tablet.

I can't speak for Android but on IOS that would be cos they literally don't let you sign up for an account except on the website.

7 hours ago, BlueChinchillaEatingDorito said:

Now that's not to say those people don't exist, I just don't think the majority of the revenue Spotify or Netflix is getting comes through that manner. And as such, wouldn't affect them that much. 

None of Netflix's money comes through Google or Apple cos Netflix doesn't do in app payments.

 

Spotify as a matter of principle didn't used to but they started again doing so at one point. So now their IOS subscriptions are less profitable than elsewhere. Which I mean makes sense but it's still stupid that Apple and Google get away with these blatant monopolies.

[BuckGup]

Because they don't make enough money already

[Heliian]

Well this should work well for the consumer.   

 

Just pass that 30% on down the line.

[RedRound2]

I get where developers like floatplane comes from. But Epic, even though they went in like a holy angels for this small developer, was never the best giant to poke the bear. What is their argument? They want 100% margin on their profitable V-bucks instead of 70%? And it’s not like Epic doesn’t give their 30% to Sony and Microsoft. They have no precedence and zero sympathy points

 

Like if the argument was that small developers couldn’t make their products competitive due to overhead cause by 30%, it probably fair better in court.