Google Play drops commissions, Pinterest clones TikTok
originally published on 10/23/21
Google lowers its Play Store commissions. In a significant move, Google announced it would lower commissions on subscription-based apps to 15% from day one, instead of 30% for the first year, which then drops to 15% in year two and beyond (like Apple offers). It also announced that apps participating in its new Play Media Experience Program could see their commissions adjusted to as low as 10%. This program includes apps where the content costs account for the majority of sales, including video streaming, music and e-books apps. Google also competes in some of these areas with its own services and is under increased threat of regulation globally, as well as engaged in lawsuits over app store fees, including one in the U.S. with Epic Games. The new fees will kick in on January 1, 2022 and follow Google’s previously announced reduction of commissions from 30% to 15% on the first $1 million of developer earnings. Google says 99% of developers will qualify for a service fee of 15% or less. Sensor Tower data indicates Google Play saw $38.8 billion in overall consumer spending in 2020, earning it $11.6 billion in in-app purchases.
⭐️ Apple introduced a new set of App Store Guidelines which include three key changes, including those to anti-steering rules. One of the changes is the result of a previously announced settlement agreement with a class of U.S. app developers. It clarifies that developers are allowed to communicate with their customers about other payment methods available outside their app. Related to this, another new guideline explains that apps may request customer information like name and email, but the request must be optional for the user and shouldn’t prevent them from using the app. The third guideline is unrelated to legal action, and simply details how developers can use a new App Store feature, called in-app events, which rolls out next week.
⭐️Pinterest clones TikTok and announces $20 million in creator rewards. Pinterest has been trying to reposition its business as a home to creators, not just a shopping inspiration site. This week it expanded those efforts with new TikTok-inspired features, including a vertical video feed that features its video-powered “Idea Pins” and the ability to respond to videos with “Takes.” It also announced a plan to invest $20 million in “Creator Rewards,” a series of expanded creator tools, support for the Amazon Associates affiliate program, as well as the launch of its own original content.
⭐️ Trump announced his plans to launch a new social networking app, which of course he’s calling Truth Social. The former president was banned from major social platforms following the January 6 attack on the Capitol, for using his account to incite violence. According to a press release this week, Trump Media and Technology Group will merge with a SPAC called Digital World Acquisition Group to launch Truth. But before you go thinking Trump has built his own Twitter, it turns out the new network is actually just a fork of the open-source Mastodon codebase. Mastodon is released under the AGPLv3 license, which requires the code and its modifications to be made public. Truth has not done so, even though screenshots and investigations clearly reference Mastodon. Instead, the Truth website falsely claims all its source code is proprietary. This means Truth is in violation of the Mastodon licensing agreement, and the organization is now seeking legal counsel…