Google announced today that it will be reducing the commission it takes from Android developers that distribute paid applications and offer in-app purchases through the Play Store. The service fee on the first $1 million (USD) in revenue every year will be lowered from 30% to 15%.
The reduced service fee will start on July 1, 2021, with Google noting how “99% of developers globally that sell digital goods and services with Play will see a 50% reduction in fees.” The company says about 3% of developers globally offer paid apps or IAPs.
While these investments are most critical when developers are in the earlier stages of growth, scaling an app doesn’t stop once a partner has reached $1M in revenue — we’ve heard from our partners making $2M, $5M and even $10M 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 $1M of total revenue earned each year available to every Play developer, regardless of size.
It follows a similar move that Apple made last year amid regulatory pressure into their gatekeeping roles. Unlike the iOS App Store, Google is not requiring developers to first join a program, which has seen some rejections, to get these benefits.
This change also comes ahead of Google Play requiring Android apps to use its in-app billing system this September. The company has previously made the case that its fee is “fair” and needed to maintain the vast downloads infrastructure and security measures to protect Android users.
Google will provide full details on this Play Store commission change in the coming months.
More about Google Play:
- Play Console adds new metrics, comparative benchmarks for Android developers
- Play Store can now share apps and updates with nearby devices; here’s how
- Google Play allowing Android gambling and betting apps in more countries, including US
FTC: We use income earning auto affiliate links. More.