Google Play Store is accused of favoring specific Android app developers, and the accusation is allegedly transforming into a class-suit lawsuit against Google. To be specific, the core issue of this practice is the fact that other app developers do not receive the same treatment, and the commission fee for Google is unfair.
Google Play Store billing system
“Netflix, Spotify, and Tinder, some of the nation’s largest and most popular subscription services, have repeatedly sought to bypass Google Play Billing. In particular, Netflix wanted an alternative payments system. Apparently, in an effort to ameliorate this displeasure, Google offered to take a significantly reduced revenue share percentage to Netflix,” accused the lawyers.
The Google Play Billing is mandatory for all Play Store apps. However, as we already know, apps such as Netflix or Spotify get credit card details directly. Google has explained in a recent statement that this is simply a temporary exception. App developers have one year before they must integrate the Google billing system. Moreover, Google clarified that 97% of the apps already have Google Play’s billing, and only 3% need to work on integrating the system. The deadline for this payment update is September 30, 2021.
The Google billing system takes a significant chunk of an app’s revenue, more specifically, 30%. According to the official complaint, the fee is arbitrary and has no rationale. Accusations also say Google is exploiting the monopoly power it holds on the app market. Calculations revealed that a 6% fee would be enough for Google to break even.
Google’s statement
A Google spokesperson offered an official response on this issue:
“All developers are subject to the same policies as all other developers, including the payments policy. We’ve long had programs in place that support developers with enhanced resources and investments. These programs are a sign of healthy competition between operating systems and app stores and benefit developers.”
