Google’s Play Store is home to millions of different apps made by various developers around the world. So, much like Apple, Google also charges a commission for digital products and services which developers offer in their apps. Now, the Mountain View giant has announced to reduce that commission by 50 percent. This move will help developers succeed and gain more profit by selling their digital goods and services on the platform.
Google Play Commission Reduced to 15 Percent
The move comes after Apple’s decision to reduce the App Store commission last year. So now, the company will levy a 15% commission on apps and services on the Google Play platform instead of the previous 30% cut. This new policy will go into effect starting from July 1 of this year.
….But There’s a Catch!
However, this move is a bit different than Apple’s strategy. This is because, unlike Apple, Google will take a 15% cut from developers for the first $1 million of revenue earned via the Play billing system each year. Beyond the first $1 million, however, the company will levy the 30% commission as before. Apple, on the other hand, lowers the commission fee based on the revenue earned by the developer in the previous calendar year. If a developer earned less than $1 million last year, Apple will take a lower 15% commission fee. Google, on the other hand, is offering a 15% fee to every developer.
So, as per the estimates, Google says that this 50% cut in the commission fees will help 99% of the developers on the Google Play platform earn more than before. This will also help developers succeed, no matter how big or small they are.
“We’ve heard from our partners making $2 million, $5 million, and even $10 million a year that their services are still on a path to self-sustaining orbit. This is why we are making this reduced fee on the first $1 million of total revenue earned each year available to every Play developer that uses the Play billing system, regardless of size. We believe this is a fair approach that aligns with Google’s broader mission to help all developers succeed,” wrote Sameer Samat, the VP of Android and Google Play in an official blog post.
