Google toughens enforcement of 30% revenue share with developers
Reports indicate the updates could come as soon as next week
Google, like Apple, requires app developers to give it a share of all in-app purchases. However, some developers have skirted these rules, such as Epic Games, by allowing users to pay with a credit card instead of Google Pay. This trick helps them bypass Google’s 30% fee.
This high-margin revenue share leads to billions in revenue for Google and Apple, so they have become rather protective of them. Some developers, though, see these "App Taxes" as excessive and are even forming coalitions to challenge them.
Sources told Bloomberg that Google looks to protect these fees by releasing a new set of guidelines clarifying the fee requirements. The updates could come as early as next week. According to the report, Google won’t immediately pull non-compliant apps from the Play Store. Instead, it’ll give them time to update their apps and bring them into compliance.
There are no details on how Google plans to enforce the rules more successfully. There’s a chance it makes Google Pay a requirement for all in-app purchases. It may also take away the apps’ ability to point users to websites outside the app to make purchases or subscribe, which is one way Apple keeps things in check.
When Google officially announces the updates, we’ll let you know what’s changes. Check back soon for updates.