Google Says All App Developers Must Begin Forking Out 30% Play Store Cut Next Year

Shivdeep Dhaliwal

Mon, Sep 28, 2020, 10:40 PM2 min read

In this article:

Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) subsidiary Google wants developers who offer in-app purchases on its Play Store to exclusively use its in-house payment system that gives it a 30% cut.

What Happened: The Sundar Pichai-led tech giant said in a blog post that developers are expected to “pay a service fee from a percentage of the purchase.”

The vast majority of developers already utilize the Google Play billing system, as per the company.

“Less than 3% of developers with apps on Play sold digital goods over the last 12 months, and of this 3%, the vast majority (nearly 97%) already use Google Play's billing,” the company said.

The tech behemoth is giving developers until Sept. 30, 2021, to make the necessary updates and comply with its billing policies.

Why It Matters: Google takes a 30% cut from payments made within apps on the Google Play store, the New York Times reported.

Netflix Inc (NASDAQ: NFLX) and Spotify Technologies Inc (NYSE: SPOT) have reportedly skirted the Mountain View, California-based company’s billing system by allowing users to pay them directly using a credit card.

Rival Apple Inc (NASDAQ: AAPL) is also facing flak for similar policies as it too charges a 30% cut for in-app payments.

Companies like Match Group Inc (NASDAQ: MTCH), Tencent Holdings Limited-owned Epic Games, and Spotify have joined the Coalition For App Fairness in a bid to get the Cupertino-based tech giant to change its policies.

Epic Games is also engaged in litigation against both Apple and Google after its popular game “Fortnite” was removed from their respective app marketplaces.

Price Action: Alphabet Class A shares closed nearly 1.4% higher at $1,458.66 on Monday and rose almost 0.4% in the after-hours session. On the same day, the company’s Class C shares closed 1.35% higher at $1,464.52 and gained nearly 0.4% in the after-hours session.

See more from Benzinga

Here's Exactly When Social Security Recipients Can Expect Benefit Cuts, According to the Latest Trustees Report
Social Security payments may be subject to cuts. Here's what the timing looks like.
Motley Fool
Can I Use My RMDs to Transfer Money Into My Roth IRA?
If you're taking a required minimum distribution from an IRA, 401(k) or other tax-deferred account and don't need the money to cover living expenses, where should you stash that unneeded cash? Investors now need to start taking RMDs at age 73 or, if they were born after 1960, at age 75. Depending on the balances of […] The post Can I Use My RMDs to Transfer Money Into My Roth IRA? appeared first on SmartReads by SmartAsset.
SmartAsset
Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought
The popular growth investor added to these three existing positions on Tuesday.
Motley Fool
How Much Cash Can A $300,000 Annuity Generate For Me Each Month?
Imagine having a reliable source of income you can count on throughout your retirement. That’s the promise of an annuity. These insurance products have been designed to turn your savings into a steady stream of monthly payments. They guarantee peace of mind and financial security in your golden years. Don't Miss: Are you rich? Here’s what Americans think you need to be considered wealthy. Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you. An
Benzinga
Stocks could tank after an ill-advised 'melt-up' if the Fed cuts rates to avoid recession
"Investors' expectation that the Fed would nip a recession in the bud by easing means that the Fed Put is back," Ed Yardeni said.
Business Insider
Can You Guess What Percentage Of A High-Net-Worth Individual's Portfolio Is Typically Held In Retirement Accounts?
High net worth individuals (HNWIs) are those who have at least $1 million in easily convertible assets like cash, stocks, and bonds. They often manage significant wealth across diverse portfolios. As per Empower’s financial dashboard, retirement accounts such as 401(k) plans and IRAs comprise 55% of total wealth for many HNWIs. This is a stark contrast to the median household. Pew Research Center reports that these accounts typically represent only 27% of the net worth of households where at lea
Benzinga
Pfizer Stock Is Near An 11-Year Low — But Is It A Buy On This 'Massive' Upside?
Pfizer stock ran up to its 50-day line after the company reported better-than-expected sales and profit. Is PFE stock a buy?
Investor's Business Daily
3 Ridiculously Undervalued Stocks to Buy Hand Over Fist Right Now in May
Investing in cheap stocks brings unique risks because there is usually a reason the companies are undervalued.
Motley Fool
Morgan Stanley Predicts up to 110% Rally for These 2 ‘Strong Buy’ Stocks
Uncertainty is the word of the day, in reference to the near-term economic future. Sentiment will hinge on the inflation numbers due out next week. March’s figure rose to 3.5%, and April’s job numbers showed a marked slowing in the labor market; that combination has stoked fears of stagflation. But – corporate earnings from Q1 are beating expectations, and the stock market has taken a turn for the better with the S&P 500 closing just below 5,200 yesterday. Economic strategists are still optimist
TipRanks
Second Death - Pfizer Reports Young Boy's Death After One Year Of Gene Therapy Treatment In Muscle Wasting Disorder Trial
A young patient died due to cardiac arrest after receiving Pfizer Inc’s (NYSE:PFE) experimental gene therapy in a mid-stage trial for Duchenne muscular dystrophy (DMD), the company told in a letter to Parent Project Muscular Dystrophy. The boy was enrolled in Phase 2 DAYLIGHT study studying the treatment in boys at least two years old and under four years old. The patient received the investigational gene therapy, fordadistrogene movaparvovec (PF-06939926), in early 2023. Citing Pfizer, Reuters
Benzinga

Recommended Stories