Google has announced it would be reducing its fee from 30% to 15% for the first $1 million that developers earn through Google Play annually.
Slightly similar to Apple’s recent commission policy, Google’s policy is different in that it restricts the commission slash to the developers first million-dollar earning. Subsequently, the fee returns to normal.
“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,” wrote Google’s Sameer Samat. “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.”
In November 2020, Apple announced plans to halve the commission it takes from the sale of apps and virtual goods sold within them from many of the smaller developers using its stores come January 2021.
The company added that any existing app-maker who earned $1m (£830,000) or less from Apple’s marketplaces in 2020 would only have to give up a 15% cut in 2021.
About 28 million developers use Apple’s store, and the firm said the charge fee cut would benefit a majority of these developers including new developers.