Google Play Updates Policy to Allow NFTs and Blockchain-Based Apps

In a surprising move, Google has announced an update to its Play Store policies, now permitting apps and games that incorporate Non-Fungible Tokens (NFTs) onto its platform. This decision marks a significant shift in Google's approach to blockchain-based technology and opens up new opportunities for developers and artists.

Under the new rules, games that utilize tokenized assets must clearly disclose their use of blockchain elements. Developers are required to submit declarations for apps that facilitate the sale of blockchain-based content. This requirement sets a relatively low bar for marketing NFTs, gaming, and gambling apps, making it more accessible for developers to engage with this emerging market.

Google aims to promote responsible use and will prohibit developers from glamorizing potential earnings derived from NFTs. Additionally, the policy extends to banning any "loot box" mechanisms in alignment with their anti-gambling stance. Developers are prohibited from glamorizing potential winnings associated with playing or trading these assets, aligning with Google Play's guidelines on Real-Money Gambling, Games, and Contests.

Google collaborated with Reddit, which recently experienced notable success with its Avatar NFTs, to shape the updated policy. Matt Williamson, Senior Engineering Manager at Reddit, stated in a press release, "We partnered with Google to help update their policy, aimed at creating a level playing field that promotes user trust and responsible usage of blockchain technology."

Joseph Mills, Google Play's Group Product Manager, expressed the platform's commitment to nurturing innovation and enabling developers to bring their ideas to life. The policy update aims to introduce new ways of transacting blockchain-based digital content within apps and games available on Google Play.

This policy change follows Google's history of taking a firm stance against blockchain-based apps, such as the ban on crypto mining apps in 2018 and the removal of the blockchain game "Bitcoin Blast" from the Play Store in 2021.

In April 2023, Google Cloud also announced an initiative to support Web3 developers in expediting their startups built on Polygon Protocols, further indicating their growing interest in blockchain technology.

Stark Contrast

Apple's App Store permits NFTs but continues to restrict their use for unlocking content and alternative payment methods like cryptocurrency, reaffirming its stance from late 2022. Google's new policy update offers a more favorable environment for entrepreneurs looking to monetize their assets. Apple, for instance, requires users to utilize an in-app payment function, which deducts 30% of all gross sales for NFT purchases.

This 30% fee generated significant backlash from users and vendors, leading to a legal dispute between Apple and Epic Games. The lawsuit, which spanned from August 2020 to September 2021, ultimately resulted in a largely favorable judgment for Apple.