Why the Google x Epic Settlement Is Only Part of the Story
Google–Epic reached a “comprehensive settlement” in San Francisco this week: unlocking lower Play fees + real alternative options. But the potential impact on mobile developer fees isn't as straightforward as some payment providers claim - more on that below. 5 Main Takeaways from the Epic and Google Android Store Settlement * Direct Reduction in Commission Fees: Google is forced to "set certain limits" on its 15%-30% commission on in-app transactions. Big win against the 'Play Store Tax'
Google–Epic reached a “comprehensive settlement” in San Francisco this week: unlocking lower Play fees + real alternative options.
But the potential impact on mobile developer fees isn't as straightforward as some payment providers claim - more on that below.
5 Main Takeaways from the Epic and Google Android Store Settlement
- Direct Reduction in Commission Fees: Google is forced to "set certain limits" on its 15%-30% commission on in-app transactions. Big win against the 'Play Store Tax'.* (And that's a big *)
- Access to Other Payment Systems: The settlement focuses on "expanding developer choice and flexibility", paving the way for studios to use or offer alternative payment processors (But bear in mind Google will still be charging a service fee!)
- Competing Distribution Channels: The settlement upholds that Google must allow distribution of "rival third-party app stores" directly within the Play Store. More competition in Android means more innovation and better revenue-sharing.
- Increased Competition = Better Terms: The competitive pressure should force Google to offer better terms, lower fees, and more incentives. A definite win for players.
- Sets a Powerful Precedent for the iOS Market: A settlement with Google means even more pressure on Apple. This news helps cement that the D2C revolution is here to stay, not a fad.
*The settlement doesn't remove Google's cut entirely: the proposed service charges are between 9-15% and will seriously eat into revenue once coupled with an external payment vendor and their fees.
Part Truths and Hidden Fees
Not every platform with ‘lower fees’ is telling the full story. The settlement provides more flexibility but alternative vendor costs, hidden fees, and IAP experiences with more friction result in less revenue, not more!
The solution?
Mobile game studios need to embrace solutions that both reduce the cost from platforms while increasing revenue at the same time.
Anything else is a lower 'fine' than before, but still having your lunch eaten but this time from Google + external payment vendors.
If you develop Android games and looking to take advantage of the new Google settlement by saving on fees while leveraging payment best-practices from over a decade of monetizing gaming companies, let's talk: https://www.tebex.io/contact-sales?ref=buycraft.ghost.io
