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Google Makes Deal With Developers in Latest App Store Shift

Google has reached an agreement with U.S. developers that will allow customers to subscribe to services outside of the company’s Play Store, marking the latest change in the app-store economy that predominates with Apple Inc.

Google has reached an agreement with U.S. developers that will allow customers to subscribe to services outside of the company’s Play Store, marking the latest change in the app-store economy that predominates with Apple Inc.

Alphabet Inc. The department plans to provide $ 90 million annually from 2016 to 2021 to support developers earning $ 2 million or less through the company’s App Store. Google will continue to charge a 15% fee on the first $ 1 million in annual revenue. The U.S. developer’s Play Store, the company said in a statement on Thursday.

The deal reflects an agreement Apple made last year with smaller developers, who pushed for a change in how the App Store works. Like Google Settlement, Apple developers were allowed to place low-cost ads directly to customers via email or other communication outside the App Store. Apple has also agreed to support developers using the 100 million pool – slightly larger than what Google is offering.

Due to a separate settlement with the Japanese Fair Trade Commission, Apple now bypasses the tech giant’s 15% -30% fee, allowing third-party subscription services to bill customers outside the App Store.

Both companies have faced intense legal and political scrutiny over the commissions and billing restrictions that apply to payment services in their app stores. Congress is weighing a bill to force technology companies to change their software business models. Last July, three dozen states sued in part over Google’s app-store policy.

Match Group Inc., which runs dating services like Tinder, sued Google in May over its Play Store policies, saying the search giant was acting exclusively with its billing rules. Within weeks, Match said Google had changed its policy, encouraging the dating site to withdraw its legal efforts to obtain a temporary restraining order. Google announced in March that it would launch a test to bill some app users as an alternative to paying directly through Google.

In an agreement announced Thursday, Google said it was revising its policies to allow developers to interact with customers outside of the Play Store, including “subscription offers or low-cost offers on competing app stores or developer websites.”

The Mountain View, California-based firm also said it would publish an annual transparency report on activity in the App Store, which includes statistics such as moving apps and closing accounts.

Apple, based in Cupertino, California, has agreed to release a similar annual transparency report on app removal.




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