New Changes in Play Store policies pushes 30% revenue sharing model

Recently, Google has made some changes to the Google Play Store policies and have made sure that the developers are not able to skip the 30% cut from the in-app purchases. The company is making sure to push the developers harder for in-app purchases cut off worth 30% to Google. Companies like Netflix, Spotify, Match Group, and Epic Games, have circumvented this move by Google. Google Play Store is expected to change the guidelines and policies by the next week after which the developers will be bound to provide a 30% cut to Google using their payment platform. After the new policies, any new n-app content downloads, game upgrades, and subscriptions will get Google a 30% cut as commission. 

Currently, many applications like Netflix and Spotify apps prompt consumers to pay using a credit card, rather than their Play app store account, bypassing Google’s fee. However, with the new policy, they will not be able to use a credit card for payment of subscriptions. Most of the major app developers are currently not in sync with the update that will be applied next week.

Google’s official statement says that “For developers who choose to distribute their apps on Google Play, our policy has always required them to use Play’s billing system if they offer in-app purchases of digital goods. We are always working with our partners to clarify these policies and ensure they are applied equitably and reasonably”. It is a similar kind of issue where users are very facing the App store and blaming them for monopoly.

SourceNdtv

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