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Google Play service fee reduced to 15% for the first $1M/year

android-developers.googleblog.com

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Re: Google Play service fee reduced to 15% for the first $1M/year

#301

Post by necovek »

mrkramer wrote: post #205
ocdtrekkie wrote: post #134

Earlier quoted context omitted.

Google exists, for one. Microsoft decided against early attempts to acquire Google or block their toolbar in IE because of the fear of further antitrust legislation.

You think Google would sell to Microsoft? Larry and Sergey are one the smartest founders ever. They had clear vision and mission for Google.

Well, they had a clear vision about "organizing the world's information", but ads did not enter the picture until year 2000.

In 1998 they were decidedly anti-ad, but after failing to monetize differently, I guess they caved in.

However, that anti-ad approach and an attempt to avoid the results being gamed with PageRank made hordes of "us" (geeks who were being called in to help others with their "computer problems") to get everybody to switch to Google Search.

But I doubt they planned all of that, especially not to turn their company into an advertising company.

Re: Google Play service fee reduced to 15% for the first $1M/year

#302

Post by necovek »

heavyset_go wrote: post #299
oblio wrote: post #155

Earlier quoted context omitted.

Yeah, people should start treating, morally, settling just as losing a case. This doesn't apply for individuals, but companies settling for millions and millions are morally admitting defeat. Corporations can afford the drawn out court battles, so if they're not continuing them, it means that they're admitting they lost.

Settlements are a win because they don't set precedent, and are often much cheaper than going to trial, and much, much cheaper than losing. There are plenty of companies that skirt the law or civil agreements hoping that, in the worst case, they can just settle if they're brought to court.

I think European court system is not based on precedents, so while someone can point at any particular ruling in another case, it shouldn't affect ruling in their own case.

IANAL though :)

Re: Google Play service fee reduced to 15% for the first $1M/year

#303

Post by dannyw »

cletus wrote: post #146
hu3 wrote: post #132

Earlier quoted context omitted.

Google's proposition is better still. If I make $2 million on Apple i'll have to pay $600k in fees. On Google it's $450k.

Does Apple really do that? If you make $1m, they'll take $150k but if you make $1 more they'll take $300k? Really? I assumed it wouldn't be that dumb. Is it really the case?

It is the case.

Re: Google Play service fee reduced to 15% for the first $1M/year

#304

Post by heavyset_go »

Ploskin wrote: post #136

I always felt the discussion being focused on the platform tax to be a distraction. Sure, now app developers make more. Great. Doesn't change how unresponsive or draconian Google (and Apple) is in when they decide you aren't allowed to be on their Play Store anymore. Or how arbitrarily they choose to enforce their rules.

The elephant in the room is Google and Apple's duopoly in mobile app distribution, which is the cause of the two problems in your post.

Re: Google Play service fee reduced to 15% for the first $1M/year

#305

Post by heavyset_go »

40four wrote: post #147

Really a meaningless gesture if you ask me, reluctantly following Apple’s lead. A meager attempt to get regulators off their back. I believe Google & Apple should not be allowed to take a percentage at all . It should be a tiered system of fees, like a subscription or something. Sure, their systems help distribute and promote discovery of our apps, so let us pay for that . It should be a yearly fee appropriate for th…

> I believe Google & Apple should not be allowed to take a percentage at all. It should be a tiered system of fees, like a subscription or something. Sure, their systems help distribute and promote discovery of our apps, so let us pay for that. It should be a yearly fee appropriate for this service.

We should be able to pay for it, but we should also be able to choose not to use it, and bypass the Apple/Google duopoly on mobile app distribution for more competitive options, which we currently can't do. Apple bans all mobile app distribution competitors, and Google makes sure that competitors cannot compete with the Play Store on feature parity, either.

Re: Google Play service fee reduced to 15% for the first $1M/year

#306

Post by heavyset_go »

danShumway wrote: post #30
oh_sigh wrote: post #26

Wow, it sure is a coincidence that its being cut to basically the same rate (though a different structuring) as Apple. First google independently came up with the 30% rate just like Apple did, and then they independently came up with 15% for the first $1M like Apple did.

It is amazing how quickly "industry standard" prices can change after just one company deviates from them. It's almost like the standard wasn't ever set in stone or based on careful cost-benefit analysis to begin with.

Sounds more like a price-fixing cartel, and they are only acting now because they're afraid of anti-trust litigation.

Re: Google Play service fee reduced to 15% for the first $1M/year

#307

Post by ocdtrekkie »

aembleton wrote: post #102
ocdtrekkie wrote: post #11

Worth remembering that as good as it is that Google is reducing it's abusive taxation on third party developers, the primary reason they're doing this is to try to quiet the majority of developers asking for stronger government regulations against this taxation without actually reducing their profit much, since the large companies which bring in the majority of revenue still have to pay full price. Basically, they're…

> they're hoping that this will stop some app developers from demanding the right to use third party payment processors I thought you could do that for apps through the Play store. For example I pay for the Windy app through Paypal.

This is actually somewhere Google has generally been more accepting than Apple. While Apple has been very harsh on both the app purchase and any in-app content or services being through them, Google has been more lenient, historically, on the latter.

Google has actually changed their minds on that, and will start being Apple-level strict in September of this year: https://arstechnica.com/gadgets/2020/09/google-announces-cra...

Re: Google Play service fee reduced to 15% for the first $1M/year

#308

Post by occamrazor »

danybittel wrote: post #246
occamrazor wrote: post #231

Earlier quoted context omitted.

For physical products in physical stores the cut can be higher than 50%. Online referrals can be up to 20%, without the actual distribution.

That's a great point, so do the physical stores get 50% of an iphone or ipad sale?

For iPhones and iPads probably much less. For clothing, the margin can be 60%, for toys even more, for books 30-40%.

[These figures were approximately true some years ago in Italy]

Re: Google Play service fee reduced to 15% for the first $1M/year

#309

Post by enos_feedler »

ocdtrekkie wrote: post #278
enos_feedler wrote: post #245

Earlier quoted context omitted.

I believe that Google's goal is to show regulators that Apple has market power. The easiest way to demonstrate that is to follow what they do and make it look like they are in control. The reason I believe this is that it is uncharacteristic of Google to blatantly copy something like this over the years, yet it is clear they are fast following all of Apple's decisions around the app store. I would expect Google to tr…

> I believe that Google's goal is to show regulators that Apple has market power. Unlikely, since Google and Apple monopolize in the same way. Google and Apple are close allies in this fight, and if the Epic lawsuit or an antitrust investigation goes bad for one, it'll go bad for the other. > The reason I believe this is that it is uncharacteristic of Google to blatantly copy something like this over the years, This…

Actually they don't. Apple makes a consumer product and exercises control between developers and users. On the other hand, Google has power over the rest of the smartphone ecosystem via Android (practically speaking) and the installation of Google Play store. It's important that Apple move first as the "leader" and Google, representing the rest of the ecosystem "follow"

Re: Google Play service fee reduced to 15% for the first $1M/year

#310

Post by heavyset_go »

necovek wrote: post #302
heavyset_go wrote: post #299

Earlier quoted context omitted.

Settlements are a win because they don't set precedent, and are often much cheaper than going to trial, and much, much cheaper than losing. There are plenty of companies that skirt the law or civil agreements hoping that, in the worst case, they can just settle if they're brought to court.

I think European court system is not based on precedents, so while someone can point at any particular ruling in another case, it shouldn't affect ruling in their own case. IANAL though :)

Applies in the UK, though, we got our case law system from them.
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