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Google Justifies 30% Cut On Payment System Amidst Developer’s Backlash

Google Charges 30% From Developers

Google has been in the news a lot lately for scrapping the apps on the Play store. Now, they have enforced a new policy for Android apps to add to their payment system. As per the new policy, all Androids will have to use Google’s payment system for their transactions. It means that with each transaction, the app will have to pay a 30% cut. 

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Payment Policy Is Not New To The Companies 

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While many called this Payment Policy unfair, Google clarified that this policy isn’t new. As per the rules, apps that are selling virtual goods are required to use the Google payment system. But until now, Google did not enforce it and took it lightly. This leniency led many big giants like Netflix, Spotify, and many more to use the payment system for their gains only, which helped them to escape Google’s 30% cut. 

However, this won’t be the case anymore. The Vice President of Product Management at Google, Sameer Samat clarified that it wouldn’t cost anything to the users per se. The app companies are free to communicate via other means to their customers and suggest other payment methods. He said that Google does not limit Communication outside the app. The companies are free to offer lower price outside. 

This policy comes after both Google and Apple got sued by Epic Games for removing their game ‘Fortnite’. The giants accused the company of violating its policies. They accused the Epic game of creating a separate gateway for itself and thereby dodged its payment system. This new gateway made both Apple and Google lose the money that they should have earned. Sources suggest that the lawsuit filed by the Epic Games is not just about their decision. But they want the giants to change their revenue structure for all the other apps as well. 

Most Apps Use The Payment System, Google Claims 

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In a blogpost by Samat, he clarified that out of all the apps on the Google Play Store, only 3% of them don’t use the Google Payment System. However, with the enforcement on the new policy, they will have to comply to do the same. The rules are strictly effective from September 30, 2020. Samat further added that the amount they charge from the developers is fair. And it is only when the developers are charging the customers for downloading or in-app purchases. Further, the revenue made from this will only assist them in developing the user experience. And is a win-win for both Google and developers. 

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The payment system isn’t the only controversy Google made in the past few days. It recently took down Paytm from the Play store. It accused the company of violating its policies. In an interview, Paytm Cheif Executive Vijay Shekhar Sharma said that the removal of their app was “arbitrary”. He said that his only aim is to ensure that Indian apps get a fair chance of competing in the market and the foreign apps follow the rules.