Google Play’s New Fee: $2–4 Per App Install
▼ Summary
– Google has set a January 28th deadline for developers to enroll in its new programs for alternative billing and external app download links, as part of complying with a court order.
– The company plans to charge significant fees for these alternatives, including per-install fees for apps downloaded via external links and a percentage cut of in-app purchases.
– Developers using alternative billing would receive only a minimal 5% discount compared to Google’s standard fees, which may not incentivize adoption.
– Google’s proposed fees are already facing opposition from Epic Games, which plans to challenge them, and could face judicial scrutiny similar to Apple’s recent contempt ruling.
– The final outcome depends on Judge Donato, who will hold a hearing and decide whether to accept a broader settlement or rule on the current compliance plan.
The landscape for app distribution on Android is shifting as Google introduces new fees for developers who choose to steer users outside the official Play Store. This move comes in response to a court order mandating greater openness, but the proposed charges are sparking significant debate. Developers who link to external download sources could face substantial per-install fees, raising questions about the true cost of this newfound freedom and setting the stage for further legal scrutiny.
Google has quietly updated its policies, setting a January 28th deadline for developers to enroll in new programs if they wish to use “alternative billing” or include “external content links” to download apps from outside the Play Store. While the company is not yet collecting money, it has outlined a future fee structure. For every app a user installs within a day of clicking an external link, Google plans to charge the developer $2.85. For games, that fee jumps to $3.65 per install. On top of this, the company would take a 20 percent commission on in-app purchases and 10 percent on auto-renewing subscriptions processed through those externally downloaded apps. Participation requires developers to submit their apps for Google’s review, integrate a specific Google API for tracking, and report all transactions, including free trials.
For those considering offering their own payment systems within apps distributed on the Play Store, the incentive appears minimal. Google is offering only a 5 percent discount compared to its standard rates, resulting in a 25 percent fee for in-app purchases and 10 percent for subscriptions. A small concession exists for smaller developers: some fees will be capped at 10 percent of their first $1 million in earnings. However, this represents just a marginal improvement over the existing 15 percent cap already in place.
The court’s reaction to these proposed fees is the critical unknown. In a similar case involving Apple, a judge found the company in contempt for imposing a 27 percent fee on external payments, a decision recently upheld by an appeals court. That ruling suggested a company could charge a commission, but only one that reflects the “genuinely and reasonably necessary” costs of facilitating external links. Google defends its planned fees as reflecting “the value provided by Android and Play,” but it has paused collection for now, stating it is not currently requiring transaction reports from developers in the program.
Epic Games, which brought the lawsuit against Google, has formally opposed these potential future service fees and stated it will challenge them if implemented. The entire situation could be circumvented if the judge approves a separate, global settlement proposed by Google and Epic, which includes lower standard fees. However, that settlement also contemplates fees for alternative billing and external downloads, and the judge has expressed skepticism, scheduling an evidentiary hearing for January 22nd. As the legal battle continues, Google’s support pages detailing these policies remain subject to change, leaving developers in a state of uncertain anticipation.
(Source: The Verge)
