(Bloomberg) -- Alphabet Inc.’s Google said it has reached an agreement with app developers in the US that will maintain the company’s commission rates and let consumers subscribe to services outside Google’s Play Store.
Google said it will provide $90 million to support developers who earned $2 million or less annually through the company’s app store from 2016 to 2021. Google will continue to charge a 15% fee on the first $1 million in annual revenue earned from the Play Store by US developers, the company said Thursday in a statement.
Google, like Apple Inc., has faced intense legal and policy scrutiny over the commissions and billing restrictions applied to paid services in their app stores. Congress is weighing a bill to force the tech companies to change their software business models. Last July, three dozen states sued Google in part over its app store policies.
Match Group Inc., which runs dating services such as Tinder, sued Google in May over its Play Store policies, saying the search giant was acting as a monopolist with its billing rules. Within weeks, Match said Google had made changes to the policies, spurring the dating site to withdraw its legal effort to gain a temporary restraining order. Google also announced in March that it would begin a test to let some apps bill users directly as an alternative to paying through Google.
Match Says Google Makes Concessions on App Store Payments
In the deal announced Thursday, Google said it was revising its policies to let developers contact customers outside the Play Store, including “about subscription offers or lower-cost offerings on a rival app store or the developer’s website.”
The company also said it would publish annual transparency reports about activity on its app store, including statistics such as apps removed and account terminations.
©2022 Bloomberg L.P.