Google announced it will require all Android apps on the Play Store to use its IAP Billing System beginning next year.
Google has confirmed the rumors circulating recently within the tech community that starting next year all Android apps offered on the search giant's Play Store would have to use the company's IAP Billing System for the app's in-app purchases or IAPs. The company also announced how its own first-party apps plan to adapt to the newest policy.
At the moment, several Android apps like those of Spotify, Netflix, and other huge services are not using the IAP Billing System of the Google Play Store. Customers can directly enter their payment information with the third-party app or developer without going through Google's billing system. Since Google has no way of knowing about third-party purchases, these services get the entire amount of the subscription or payment, leaving Google with nothing. Google revealed this is the case with around 3% of developers with apps on its Play Store.
Google's alternative is to require Android Apps on the Play Store to use its IAP Billing System so users will instead supply their credit information to the Google Play Store, which will then act as a middle party in in-app purchase deals. The advantage of this approach is that customers need not have to enter their billing information over and over again, and in addition, they can cancel services they subscribed to using a consolidated "Subscriptions" page on Google Play Store. The catch is that developers and companies have to give up a percentage of the total amount to Google for facilitating the deal.
In the announcement, Google said it wanted to ensure that the company's policies are clear and updated so they can consistently remain fair to all developers. The search giant also revealed they have clarified their language in their Payments Policy, making it more explicit that all developers selling their goods or services with their Android apps on the Google Play Store are required to use Google's IAP Billing system beginning next year.
Google reminded everyone that using the IAP Billing System has always been the policy but the company now wants its enforcement to cover all developers of Android apps on the Google Play Store. The search engine giant maintained that this policy is "fair" for all, given what the company does to manage the infrastructure and security system on the Google Play Store. The company also said that this approach allows them to continue reinvesting in the platform, which in turn, aligns their success with the victory of developers.
The policy requiring Android apps developers to use Google Play Store's IAP Billing System will start next year, specifically beginning October 1, 2021. This is to allow developers to make the necessary adjustments and the time to adapt to the new policy until September 30, 2021. Google also said that except for the YouTube family of services, all its first-party apps are also covered by the policy.
