Google makes Play Billings mandatory for in-app purchases from September 2021

Synopsis

This would mean that developers will have to start using Google's billing system that charges a 30 percent cut of the payment made within the app, starting September 2021. Any app that chooses to offer in-app purchases of digital goods like unlocking additional features or buying tokens to power up a game character or paying for songs, will be required to use Google Play's billing system.

Google on Tuesday said apps that choose to sell digital content through its Play Store have to use Google Play billing system and pay a percentage of the in-app purchase as a fee. The tech giant - which was recently embroiled in a controversy after blocking the Paytm app for a few hours - said while the policy for using Google Play's billing system for in-app purchases of digital goods has been in existence, there was a need to clarify it.
 

"Today, we are clarifying a Play billing policy, which has been long standing and existing...Recent incidents and otherwise have shown us that clarifying policies and applying them equitably and equally is very important for the ecosystem ...every developer that chooses to sell digital content through Google Play will use Play billing," Google Director Business Development, Games and Applications Purnima Kochikar told reporters in a virtual briefing.

This would mean that developers will have to start using Google's billing system that charges a 30 percent cut of the payment made within the app, starting September 2021.

Any app that chooses to offer in-app purchases of digital goods like unlocking additional features or buying tokens to power up a game character or paying for songs, will be required to use Google Play's billing system.

However, physical goods (like ride-hailing services) or paying for content subscription via the developer's own website will not require Play billing.

For developers who already have an app on Google Play (which has over 2 billion monthly active users ) and require technical work to integrate with Play billing system, the company will provide time until September 30, 2021, to complete the necessary updates.

Kochikar said about 97 percent of the developers seem to understand and comply with this policy, but did not name those who were non-compliant.

Both Google and Apple have drawn criticism from many developers over the high fees they are charged. As per reports, Spotify, Match Group (which runs Tinder) and 'Fortnite' developer Epic Games had announced they were joining a non-profit coalition 'App Fair Alliance' to pressure Apple to change its stance on fees.

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