Google reaches agreement with developers on Play Store

Google announced on Wednesday that it has reached an agreement with US developers who sued the tech giant over its market monopoly and billing practices. The company will now let developers offer users third party subscriptions outside its Play Store. 

The news follows Apple’s announcement that it will now allow apps distributed in South Korea to offer third party payment options. 

As part of the settlement, Google also announced a $90 million fund for Google Play developers in the United States that made $2 million or less annually between 2016-2021.

In addition, it will also maintain the 15% commission fee on the first $1 million developers make in a year, revise its Developer Distribution Agreement terms to clarify that developers can use consumer info to reach out to them outside of their apps, make it easier for Android users to use alternative app stores, release annual transparency reports about app removals & account terminations and showcase apps from indie developers on the Play Store in a new section named ”Indie Apps Corner”. 

Both Google and Apple have long been facing legal challenges in many countries over their app store billing rules. 

Earlier this year, Tinder and OkCupid maker Match Group sued Google over its Play Store payment policies. The company later withdrew its request as the parties reached a temporary agreement

In March this year, Google also announced the launch of a new pilot program named ”user choice billing” allowing a limited number of developers including Spotify to use alternative payment solutions. 

Written by Sophie Blake

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