Google to Collect 30% Cut on In-App Purchases Starting in 2021

Taking a page out of Apple’s  (AAPL) – Get Report book, Google will begin more strictly enforcing rules that require developers to use Google’s  (GOOGL) – Get Report payment system for in-app purchases. 

Google announced the change on its Android developer blog on Monday, describing it as a clarification of Google’s existing rules on in-app purchases. Google had an existing policy requiring developers to use Google’s billing system, but the policy had been loosely enforced. 

“We’ve always required developers who distribute their apps on Play to use Google Play’s billing system if they offer in-app purchases of digital goods, and pay a service fee from a percentage of the purchase,” wrote Sameer Samat, VP of product management at Android. “We only collect a service fee if the developer charges users to download their app or they sell in-app digital items, and we think that is fair. Not only does this approach allow us to continuously reinvest in the platform, this business model aligns our success directly with the success of developers.” 

Source Article