Google’s Open Approach to Android Market Prioritized Growth Over Profits

Fortnite publisher Epic Games is suing Google, potentially jeopardizing the app store’s survival. Epic filed a lawsuit against Google in 2020, citing the Android operating system’s Google Play Store as an illegal monopoly, following a dispute over in-app purchase prices. It requests that Google make it simple to utilize sideloaded programs, third-party app stores, and non-Google payment processors. Google objects, claiming that these demands will hinder Android’s capacity to provide a safe user experience and rival Apple’s iOS.

The ongoing legal battle between Google and Epic Games, the publisher of Fortnite, has revealed how much money was actually collected by Google through the Google Play Store. The numbers are staggering, especially considering that when Google first introduced the Android market in 2008, it only intended to get a small portion of the revenue in order to pay for administration and other expenses. However, now surprising news indicates that Google did not intend to run the Android market as a means of making money at the time. Instead, it kept 5% of revenue, with the operators receiving 25% and the developers receiving 30%.

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The Epic-Google case has revealed more current data, among other things. The Play Store reported an operational profit of $4.4 billion in the first quarter of 2020, or an operational margin of 65%, up 33% over the same period in 2019. Although the Google Play Store has grown to be a crucial component of the Android experience over time, it appears that even Google did not anticipate it would play such a significant role in the system’s early development. Even Google itself misunderstood the potential of Android and related stores. It is quite like they did not anticipate that it would grow to be as successful as it is now, as seen by the early lack of intention to profit from the Android market.

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