Google to apply 30% discount rule on Play Store apps

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Google has announced plans to start enforcing a rule requiring Android apps. (Representative)

San Francisco, United States:

Google on Monday announced plans to start enforcing a rule requiring Android apps in its Play Store to use its payment system, reducing transactions by 30%.

“We have clarified the wording of our payment policy to make it more explicit that all developers selling digital products in their apps are required to use the Google Play billing system,” said the vice president of product management, Sameer Samat, in a blog post.

People with smartphones or tablets running Google-backed Android software are free to get apps from online sites other than the Internet giant’s Play Store.

Google has always required apps offered on the virtual shelves of the Play Store to use its payment system, which charges a standard 30% commission – just like Apple does in its App Store for iOS mobile devices.

Unlike Apple, however, Google has been lax in enforcing the rule.

Google said the policy applied to less than 3% of developers with apps on the Play Store

“We only charge a service fee if the developer charges users for downloading their app or selling in-app digital items, and we think that’s fair,” Samat said.

According to Samat, the upcoming changes in the next version of Android, which are slated to be released next year, will make it easier to use other app stores while keeping users safe.

“Even if a developer and Google do not agree on the commercial terms, the developer can still distribute on the Android platform,” Samat said.

“This is why Fortnite, for example, is available directly from the Epic store or other app stores, including Samsung’s Galaxy app store.”

In August, Apple and Google pulled the video game sensation Fortnite from their mobile app stores after its creator, Epic Games, released an update that eschews revenue sharing with the tech titans.

The latest version of Fortnite contains a payment system that allows player transactions to bypass Apple’s App Store and Google Play, preventing businesses from collecting their typical cut.

Epic quickly filed a federal lawsuit against Apple, accusing the iPhone maker of exercising monopoly power.

The lawsuit said Epic is not seeking favorable treatment, but is asking the court to order Apple to change its commission structure for all developers.

Apple said Fortnite was pulled after “Epic Games made the unfortunate decision to violate App Store guidelines which are applied equally to every developer and designed to keep the store secure for our users.”

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