Back in November, Apple announced that it would be reducing the total commission it takes from small businesses from its standard 30% down to 15% and now, Google is following suit by lowering its Play store commissions globally for developers (via TechCrunch).
Starting July 1, Google will be reducing the service fee for Google Play to 15% down from 30% for the first $1 million of revenue developers earn using its billing system each year.
Google says it will levy a 30% cut on every dollar developers generate through Google Play beyond the first $1 million in a year. According to the company, 99% of developers that sell goods and services with Play will see a 50% reduction in fees.
“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,” said Sameer Samat, VP of Android and Google Play.
“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.”
Sharma said that established firms will still have to pay an exorbitant amount of fee to the company.