Friday, March 19, 2021

Google Reduces Play Commission To 15 Percent Of Developer’s First US$1 Million Earned

Google recently announced that it is reducing the standard 30% commission fee it usually takes for each sale and transaction of the apps on the Play store, to 15% on the firsts US$1 million (~RM4.11 million) developer’s make in annual revenue on its digital marketplace.

The decision, similar to what Apple had done back in November last year, seems to come after complaints by some developers of Google Play and its fee structure, as well as scrutiny from regulators over the way it controls the operating system and the prices they charge developers.

It is also possible that Google’s loosening on its revenue practices could be partially due to last year’s fiasco with Epic Games. To recap, the latter got itself entrenched in a bitter war with Apple initially. Not long after, Google came into the picture, expressing its similar sentiment towards Epic Games’ direct payment method. Additionally, Google’s decision comes just as US states like Arizona and North Dakota are contemplating new laws that would force both the search engine and Apple into offering alternative distribution and payment options on their platforms.

The change in fees goes is slated to go into effect from 1 July onwards. Google says that the commission reduction will only be in effect until the developer’s annual revenue breaks past the US$1 million milestone. After that, the regular 30% commission for in-app purchases and downloads goes back into effect.

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