A New Era for App Developers
Following a Supreme Court denial of its appeal, Google has finally adhered to prior court rulings by allowing third-party payment options within its Google Play app store. This move grants developers more flexibility in processing payments outside the Google ecosystem and empowers them to inform users about alternative pricing alternatives.
The Legal Saga Between Epic Games and Google
In 2020, Epic Games filed a lawsuit against Google, claiming that Google maintained an unlawful monopoly through its in-app payment system. Earlier this month, the Supreme Court declined Google’s final attempt to block a District Court ruling requiring it to open its app store to external payments.
Expanded Freedom for Developers
The previous policy restricted developers from directing users toward cheaper alternatives and mandated most apps to use Google Play Billing. Consequently, Google collected commissions on nearly every in-app purchase and took a cut from recurring subscription models as well. Now, developers can more freely promote offers and manage in-app payments outside Google’s system.
They can notify users about external pricing options and include direct links to external checkout pages within their apps. Additionally, they are free to offer alternative payment methods beyond Google Play Billing, such as credit cards or PayPal.
The District Court order will expire on November 1, 2027, after which Google may revise the rules again. The new billing options currently apply only in the United States.
Following Apple’s Path
This year, Apple faced a similar challenge from Epic Games and was compelled to ease restrictions on its App Store. A U.S. district judge ordered Apple to permit developers to direct users to alternative payment methods, leading to new fees and cautionary screens for external purchases. However, the terms imposed on Apple are less stringent than those now affecting Google.
The main restriction bars Apple from charging commissions or fees when purchases occur outside its App Store platform. Yet, Apple continues to seek commissions from Fortnite users even when their transactions happen off its platform.
