in-app purchases

Mobile game Township allows users to build a town of their choosing by harvesting crops and selling them to make a profit.

It’s available as a free download on iOS and Android, with options to make in-app purchases. The game has thousands of five-star reviews on each platform.

But an Alberta father is cautioning others that apps labelled as free aren’t always so. Many free apps and games offer in-app purchases to earn money — Epic Games’ Fortnite is perhaps one of the best examples of this model. The game is free to play but earns money off of cosmetics that alter the appearance of your in-game character are available for purchase.

Unfortunately, sometimes in-app purchases can be designed to entice people to spend money, such as by blocking game progress or by making it hard to tell you’re using real money. There are also many scams that rely on in-app purchases to make money.

Jerry Marion told Global News his 18-year-old daughter got addicted to the game over the holiday season, racking up a $4,986 tab.

Marion said his daughter was confused over the fact she was using real money and believes the game capitalized on the isolation she was feeling at the time.

“She thought it was simply just credits that were being accumulated, and as the dollars were racking up, it wasn’t hitting her credit card,” he said.

Global News reports the father’s attempt to resolve the charges with Township developer Playrix didn’t lead anywhere. Marion reached out to Apple twice as well but was only issued a refund after he spoke with Global News.

Marion said corporations and parents both have a role to play when considering vulnerable people and how to protect them.

“[Parents] have to be more conscious of where we’re setting up the ability to spend money, and I think from my daughter’s perspective, it was a bit confusing for her,” Marion told the news outlet. “But I think she really understands now that as you go through these addictive cycles, you have to find ways to get out of them.”

Image credit: Township/Android

Source: Global News

Google will lower the cut it takes from subscriptions on the Google Play Store to 15 percent “starting from day one.”

The change marks a significant shift for the company, which previously charged a 30 percent cut of subscription revenue in the first 12 months before dropping to 15 percent for subscriptions that continue beyond that point. The change will come into effect starting January 1st, 2022.

Additionally, Google said it would change the service fee in the ‘Media Experience program,’ which will see the fee drop as low as 10 percent for ebooks and on-demand music streaming services.

However, Bloomberg’s Mark Gurman pointed out on Twitter that the change doesn’t apply to in-app purchases, such as for digital goods sold in games.

Google is lowering its cut from all subscriptions on Google Play to 15% from 30% — from day 1. The reduction previously only took effect on the first $1 million in revenue and for users who subscribed longer than a year. Change doesn't apply to in-app-purchases (games) however.

— Mark Gurman (@markgurman) October 21, 2021

While the change is overall good, it’s also worth keeping in mind the likely catalyst. Google positions the change as addressing “developer needs,” but it comes as Google faces down antitrust lawsuits over its Play Store practices.

Just this year alone, lawsuits have accused Google of illegally trying to control Android app distribution, paying developers to keep them on the Play Store and attempting to keep Netflix using in-app purchases by offering the company a special deal. Google also reportedly considered purchasing Epic Games to make the “contagion” of distributing apps outside the Play Store go away. While Google says the change is to help developers, it may also be an effort to avoid scrutiny over its Play Store practices.

It’s also worth noting Apple has been dealing with antitrust allegations over its App Store in recent months as well. The Epic Games vs. Apple lawsuit resulted in Apple being required to allow developers to use other payment processing systems if they wish. A similar ruling in another lawsuit saw Apple allow developers to use email to offer alternate payment methods to customers.

Both Apple and Google previously rolled out new rules that reduced the cut each company took from 30 percent to 15 percent for developers who made less than $1 million USD. The move was criticized both for poor implementation and for being an attempt to stave off regulator scrutiny.

Source: Google