Google to Slash Play Store Commission From 30% to 15%

Last Updated on 23/01/2022

Google to Slash Play Store Commission From 30% to 15%

Google will soon lower its commission for apps and services sold through the Play Store from the current 30 percent to as low as 15 percent, replicating Apple’s move last year.

The Fine Print

The new fee also applies to in-app purchases, like digital goods.

Developers who exceed the $1 million threshold won’t be treated to the reduced commission. Aside from having to earn less than $1 million per year, Android developers also must be using Google’s Play Store billing system to be eligible for the lower fee.

According to Google itself, 99 percent of developers submitting Android apps to the storefront will see their Play Store fees cut in half as a result of the latest initiative. The Play Store’s new commission structure goes into effect on July 1, 2021.

Sameer Samat, VP of Android and Google Play, said on the Android Developers blog:

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.

Vijay Shekhar Sharma, founder, and CEO of India’s mobile payments provider Paytm, called Google’s move a “PR stunt” because established companies like his are still going to be subjected to the exorbitant 30 percent fee under the new rules.

“Today’s announcement by Google,” Sharma told TechCrunch, “further raises the question whether Google plans to address concerns raised by serious internet firms at all.” Last year, more than 150 of India’s startups banded together to oppose Google’s plan to take a 30 percent cut on in-app purchases in a range of categories.

As a result of this, Google’s delayed this planned Play Store change in India to April 2022.

Following Apple’s Move

Apple made a similar change to the App Store commission last November.

According to the announcement on Apple’s website, the company’s new App Store Small Business Program (in effect since January 1, 2021) basically halves the App Store commission to 15 percent for any small developers who are earning up to $1 million per year.

Similar to Google’s new Play Store fee thresholds, Apple’s 30 percent cut remains in place if a developer’s apps earned more than $1 million in sales during the previous calendar year.

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