Google's "other revenue"[0] for Q3 was $3.4 billion of the $27 billion it made that quarter. Other revenue is mainly Play, Cloud, and Hardware. So I'd say Google is making a lot of money from other avenues.
Google is the master of leeching and rent-seeking.
Just as they pit advertisers against each other to drive up prices for impressions on third party sites, for which they keep a large middelman fee, they use the same tactics on Google Play. Developers get to bid on the #1 search result spot, while Google is milking them for 30% of gross revenue for providing a rather abysmal ZIP file download service. They are only able to charge such high fees because of the exclusivity and network effects from being pre-installed on every GMS Android phone.
Other examples of similar rent-seeking platforms are Apple App Store, Windows Store, Steam.
Just as they pit advertisers against each other to drive up prices for impressions on third party sites, for which they keep a large middelman fee, they use the same tactics on Google Play. Developers get to bid on the #1 search result spot, while Google is milking them for 30% of gross revenue for providing a rather abysmal ZIP file download service. They are only able to charge such high fees because of the exclusivity and network effects from being pre-installed on every GMS Android phone.
Other examples of similar rent-seeking platforms are Apple App Store, Windows Store, Steam.