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Google reducing commission it charges developers on app store

Google reducing commission it charges developers on app store
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Google announced on Tuesday that it is reducing the commission fee charged to Android developers on its app store, Google Play. 

“Starting on July 1, 2021 we are reducing the service fee Google Play receives when a developer sells digital goods or services to 15% for the first $1M (USD) of revenue every developer earns each year,” Sameer Samat, vice president of product management, said in a blog post.

“With this change, 99% of developers globally that sell digital goods and services with Play will see a 50% reduction in fees,” he added.

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The drop from a 30 percent fee will not only benefit smaller developers but all developers on the platform.

The service fee will be dropped to 15 percent for the first $1 million of total revenue made by each developer every year no matter the size of the developer, according to the blog post. 

The move follows Apple’s decision to cut its service fee last year to 15 percent for developers that make less than $1 million a year in sales on its app store, The Wall Street Journal reported

Apple and Google have been facing criticism from developers over how much money the companies are taking from them.

“While a reduction in the Google app tax may alleviate a small part of the financial burden developers have been shouldering, this does not address the root of the issue,” a spokesperson for Epic Games told The Hill. “Whether it’s 15% or 30%, for apps obtained through the Google Play Store, developers are forced to use Google’s in-app payment services.”

Samat in the blog post called it "a fair approach that aligns with Google’s broader mission to help all developers succeed."

This change comes as Google has been hit with many lawsuits. In the latest update, five more attorney generals joined a Texas-led suit that accused Google of allegedly stifling competition and violating antitrust laws.

-Updated 4:51 p.m.