Google cuts Play Store commission fee to 15% for most developers

Posted on by Prakhar Khanna
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Google announced today that it is halving its Play Store commission fee from 30% to 15%. However, there is a catch. The fee is being reduced to 15% for the first $1M USD of revenue every developer earns each year. This means, the company will charge the usual 30% commission if your app has earned $1M USD. 

Google wrote in a blog post that it chose $1M USD as the threshold because “we’ve heard from our partners making $2M, $5M and even $10M a year that their services are still on a path to self-sustaining orbit.”

The latest move from Google follows the footsteps of Apple. In late 2020, the Cupertino giant reduced its 30% App Store commission to 15% under its Small Business Program. 

Google’s reduced commission will come into effect starting July 1, 2021. According to the company, 99% of developers will benefit from this move. “With this change, 99% of developers globally that sell digital goods and services with Play will see a 50% reduction in fees. These are funds that can help developers scale up at a critical phase of their growth by hiring more engineers, adding to their marketing staff, increasing server capacity, and more,” wrote Google. 

The whole reduce-the-fee movement started with the Apple-Epic Games fiasco where Fortnite was banned from the App Store in August, 2020. Further, Apple just terminated Epics Developer Account, to which Epic responded by taking it up the legal way. Apple also had spats with Facebook, Microsoft, and WordPress who accused Apple of forcing to add in-app purchases in some way or the other.

Interestingly, Google’s fee cut comes after it doubled-down on its 30% commission in September last year. It announced that apps submitted this year will have to rely on Google Play Store’s native billing system for in-app payments. As a result, it would ensure that Google gets its cut of 30% for purchases made via apps downloaded from the Play Store. However, that fee is now being halved for most developers.

 

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Global app spending across Android and iOS exceeded $406 million on Christmas

Posted on by Nadeem Sarwar

It appears that this Christmas was a good one for developers and businesses (and Google and Apple as well, thanks to that sweet 30% fee), as the combined global app spending across the Android and iOS ecosystems crossed the $407 million mark for a single day in 2020. As per a Sensor Tower report, consumers spent a staggering $407.6 million across the Google Play Store and App Store on Christmas, which amounts to a significant 34.5% growth on a YoY basis compared to 2019.

“2020 has been a record-setting year for worldwide spending on mobile apps and games, which passed $100 billion in a single year for the first time ever in November,” the report adds. The single-day spending on mobile apps this Christmas accounted for 4.5% of the total spending this month as of December, which stands at an equally impressive $9 billion worldwide. Here are a few key observations from Sensor Tower’s analysis: 

App Store handily surpassed Play Store

  • Apple’s App Store again emerged as the more cash-rich platform. Apple’s repository captured 68.4% ($278.6 million) share of the Christmas day app spending, while Google’s Play Store could only reach $129 million. 
Image Sensor Tower
  • On a market basis, US was the biggest one. Smartphone users in the US spent a combined $130 million on Android and iOS apps this Christmas. 
READ MORE: TikToks and Reels will now appear in Google App for mobile devices

Mobile games were the top-grossing category

  • Mobile games emerged as the leading category this holiday season, which brought in $295.6 million on Christmas this year. This is a 27% growth compared to 2019. Talking about the crown, Tencent’s Honor of Kings led the spendings chart by bringing in $10.7 million in a single day.
  • Non-gaming apps raked in $112 million this Christmas, and the category that won here was entertainment. Consumer spending on entertainment apps reached $19.3 million this year on the App Store, while the Google Play Store amassed $4.3 million from these apps. TikTok emerged as the top grosser, with consumer spending touching the $4.7 million mark on Christmas day. 

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Google clarifies Play Store payment policy, says Android 12 will ease using third-party app stores

Posted on by Nadeem Sarwar

Google has today made a few changes, mostly linguistic, to its Play Store payments policy that clearly defines how it is implemented. Following the policy update, Google says that any app that currently relies on an alternative billing system will need to remove it before September 30, 2021. All such apps are required to adopt the Google Play In-app Billing system as the method of payment. As for the new apps that are submitted after January 20 next year, they will have to rely on Google Play Store’s native billing system for in-app payments. Of course, the policy is there to ensure that Google gets its cut of 30% for purchases made via apps downloaded from the Play Store, just the way Apple mandates for all apps listed on the App Store. 

As mentioned above, Google is drawing clear lines for in-app payments that will qualify under the revenue sharing scheme to make it easier for developers to understand the policies. As part of the update, using the Google Play In-app Billing system will be mandatory for in-game products (coins, gems, characters, weapons, special items), additional app content (exclusive features or an ad-free version of the app), subscription services (streaming music, videos, books and other media services) and cloud-based software products.

However, Google Play Store’s native billing system won’t be compulsory for apps where in-app purchases are made to buy physical goods, pay for services (food, transport, tickets), memberships (gym, loyalty programs, clothing, etc.), bill payments and peer-to-peer payments. You can read more about the policy update here.

Talking about third-party app stores, Google says that Android 12 will make it “even easier for people to use other app stores on their devices.” However, this facility will be granted after making sure that safety measures put in place by Android are not overlooked. The search giant notes that work on implementing it is already underway and that more details will be shared in the foreseeable future. Google also added that it gives equal treatment to its in-house and third-party apps on the Play Store. 

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Fortnite removed from Google Play Store after getting kicked off the App Store

Posted on by Nadeem Sarwar

Earlier today, Fortnite was removed from the App Store after developer Epic Games started offering a direct payment option in the game that will save players 20% on their in-app-purchases, but prevents Apple from taking a 30% cut as its fee. Now, Google has followed in the footsteps of Apple and has removed Fortnite from the Google Play Store. Here’s what Google had to say:

“The open Android ecosystem lets developers distribute apps through multiple app stores. For game developers who choose to use the Play Store, we have consistent policies that are fair to developers and keep the store safe for users. While Fortnite remains available on Android, we can no longer make it available on Play because it violates our policies. However, we welcome the opportunity to continue our discussions with Epic and bring Fortnite back to Google Play.”

In case you’re wondering what policy Fortnite exactly violated, Google makes it clear on its payments support page that “developers offering products within a game downloaded on Google Play or providing access to game content must use Google Play In-app Billing as the method of payment.” As for Google’s definition of in-game items, it includes pretty much everything – coins, gems, extra lives or turns, special items or equipment, characters or avatars, additional levels or playtime.

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Google Play Store has a Virtual Hand Sanitizer app, and I am entertained!

Posted on by Nadeem Sarwar

The world of mobile apps is weird. There’s an app that tells you when’s the right time to take a pee break during a movie. Another one’s a game called Pimple Popper that lets you digitally pop pimples,. And then there is my personal favorite called CatPaint that lets you add a cat to any picture, because why not? Now, a new one joins the list and it is called Virtual Hand Sanitizer.

The name says it all. Virtual-Hand-Sanitizer. And yes, it is infuriatingly opportunistic to make an app in times when we are losing our mind staying at home and spending more money on sanitizers (for good reason) than an unhealthy Happy Meal at McDonald’s. Developed by LongCatIcedTea, the app does nothing, literally nothing, but it is weirdly entertaining too.

All you have is a hand sanitizer bottle, and you tap on it anywhere to eject blue virtual hand sanitizer out of the nozzle. And yes, it makes a satisfying sound every time the liquid plops out. Sadly, there is no haptic feedback, something I sorely miss being an ‘app vibration feedback connoisseur’. Plus, there is a perpetual Facebook ad at the bottom that takes away some of the app’s aesthetic appeal.

Should you download the app? Go ahead, it’s your phone and internet connection. What’s the purpose of making it in the first place? Only God knows (and also the developer). But it is definitely amusing to see that Google Play has cleared an app that serves almost no purpose to justify its existence.

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Google is testing app subscriptions directly from the Play Store instead of in-app method

Posted on by Nadeem Sarwar

Google is working on a new app subscription method that will make it much easier to manage subscriptions. As per a TechCrunch report, a handful of apps are testing a “Free Trial & Install” button on the Play Store alongside the regular Install button that we are used to seeing on an app’s listing page. So, how exactly it is helpful?

Image: TechCrunch

Instead of going through the in-app subscription channel, users can now directly read about an app’s subscription model directly on the Play Store and buy it. Notably, users can buy an app’s subscription even if the app is not installed on their phone. Aside from being convenient for users, this model also makes it easier for developers to sell subscriptions directly from the app’s listing.

Apps that follow this new subscription method – which is based on the Android Billing Library Version 3 – will show information such as billing cost, subscription duration, the services it offers, and term of the free trial among other details on the listing page. Users no longer have to download an app to read its subscription model, and thus can avoid fraudulent charges from sketchy apps.

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Google Play Store adds a ‘Premium’ section for games that play well on a Chromebook

Posted on by Lee Kelly

Google is finally showing Chrome OS machines some extra love, rather than keeping their status quo as just another platform for Android apps. First spotted by Chrome Unboxed, Google Play Store now has a dedicated Premium section that exclusively hosts games that are suited for the Chromebook form factor too, and not just mobiles.

The Google Play Store describes the titles listed under the new Premium section as “games that play well on Chromebooks”. However, it appears that the change is rolling out via a server-side update, as the Premium section is yet to appear on my HP Chromebook at the time of writing this.

Just to make things clear, all these games are playable on your Android phone without a hitch. The folks over at XDA-Developer have compiled the complete list of Chromebook -loving games that are currently listed under the Premium section on the Google Play Store, all of which are listed below:

  1. Bridge Constructor Portal
  2. Cultist Simulator
  3. Don’t Starve: Pocket Edition
  4. The Enchanted Worlds
  5. Game Dev Tycoon
  6. Gorogoa
  7. Incredibox
  8. Project Highrise
  9. SimplePlanes – Flight Simulator

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