According to the latest news, Google has announced that it will reduce the commission it takes from Android developers who host their applications on the Play Store and offer in-app purchases. Google has lowered the service fee on the first $1 million in revenue every year from 30 percent to 15 percent. This renewed service schedule will be in effect from 1st July onwards.
According to Google, “99 percent of developers globally that see digital goods and services with Play will see 50 percent reduction in fees.” Google will levy a 30 percent cut on every dollar developers generate through Google Play beyond the first $1 million in a year.
Sameer Samat, Vice President of Android and Google Play announced this. He said, “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.”
Almost 3 percent of developers globally offer paid apps or IAPs. Notably, this change comes months ahead of Google Play requiring Android apps to use its in-app billing system. From September this year, Android apps would have to use Google Play’s in-app billing system.
On contrary to Google, Apple has opted for a different route. Last year, Apple announced that it would collect a 15 percent cut instead of 30 percent of App Store sales from companies that generate less than $1 million in revenue. This percent cut is not applicable to iOS apps on the Apple platform that generates more than $1 million in revenue.