Google to enforce Play store tax on the 3% of apps not paying

Google

Google has sought to rebut criticism that it selectively enforces its 30% mobile app shop tax, demanding that the more than 3% apps selling digital items without complying follow the rules within a year.

Apps sold on the technology leaders’ shops are needed to use their payment systems in order that they can collect some of sales, which programmers describe as a tax. The companies are protecting the allegations.

App shops are a fast-growing company as sales of Google’s search advertisements and Apple’s iPhone flatten out.

Google said under 3% of programmers using apps on its Play shop sold digital products over the previous 12 weeks, and nearly 97% comply with its payment program coverage.

Dating apps maker Match Group is one of the companies that have openly said they don’t pay Google’s 30% fee, which reduces to 15% in subsequent years if it’s for a subscription service.

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Antitrust regulators in many countries are taking a look at the issue, such as in South Korea, in which many media apps expecting Google’s stricter enforcement pre-emptively complained to government officials recently.

Apps have said 30% is excessive compared with the 2% fees of typical credit card payments processors, whereas Apple and Google state the total amount covers the security and marketing benefits their app shops provide.

New apps must utilize Google’s payments tool for earnings by January the 20th, while present apps have until the 30th of September 2021.

Apps that changed to selling electronic items from physical goods and services because of the coronavirus pandemic may acquire extra time to comply, Google said. Apple said last week that a similar temporary reprieve goes through the 31st of December.

The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Paresh Dave. Editing by Aurora Ellis and Richard Chang.

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