Linking Your App from Google's Store: A Costly Affair?

Today marked the due date for Google to outline how it's responding to Judge James Donato's directive to open Android up for third-party app marketplaces, stop illegally linking its Play Store billing with its app store, and permit developers to direct users to download their applications outside of the Play Store within the United States.

New Compliance Strategies from Google

Google isn't granting developers unrestricted freedom. Instead, the company discreetly revised its support documentation to include a January 28th deadline for enrolling in specific initiatives related to 'alternative billing' and 'external content links'—both of which will entail hefty costs for developers, provided the Judge doesn’t pivot to another decision.

Currently not implementing charges, Google revealed its intentions to levy $2.85 to $3.65 per user for installs executed within 24 hours of clicking a link that directs users away from Google’s marketplace to download apps outside their ecosystem.

Financial Implications for Developers

Additionally, Google plans to take 20% of any in-app sales and 10% from any auto-renewing subscriptions. Developers are still required to submit their apps for Google's review, utilize Google's API for tracking, and report all transactions, including free trials, to participate.

On the flip side, opting for self-managed billing solutions affords developers only a slight 5% reduction on Google’s fees, which likely makes embracing alternative billing non-viable. Google will demand 25% after app purchases and 10% from subscription renewals.

A fee cap exists at 10% for a developer's first $1 million in revenue, offering some respite to smaller developers—though it marginally softens the current 15% cap.

Judicial Review and Potential Outcomes

Judge James Donato's next steps are awaited with interest. Previously, in a related Apple case, Judge Yvonne Gonzalez Rogers upheld a 27% fee for external payments, though an appeals court indicated Apple may rightfully charge a commission based on necessary coordination costs.

Google defends its proposed program fees by claiming these reflect the value of its Android and Play services, and help sustain investments in these platforms.

Yet, Google reassures that these fees are currently not being enforced, and developers are not required to report these transactions. However, it reserves the right to impose service fees on future successful transactions and downloads facilitated by external links.

During their collaborative progress report, Epic and Google's attorneys confirmed Epic’s acceptance of the deadline but reiterated its opposition to potential service fees, pledging to contest their implementation if initiated.

Should Judge Donato opt for a comprehensive settlement, lower standard transaction fees could be applied globally, not just restricted to U.S., carrying its own set of fees for alternative billing and external downloads.

Judge Donato's call for a January 22nd evidentiary hearing will shape these developments.