Google Play Store Drops Commissions to 15 Percent for First $1M in Revenue

Manish Singh, reporting for TechCrunch:

Google will lower its Play commissions globally for developers that sell in-app digital goods and services on its marquee store, the company said, following a similar move by rival Apple late last year.

The Android-maker said on Tuesday that starting July 1, it is reducing the service fee for Google Play to 15% — down from 30% — for the first $1 million of revenue developers earn using Play billing system each year. The company will levy a 30% cut on every dollar developers generate through Google Play beyond the first $1 million in a year, it said.

Citing its own estimates, Google said 99% of developers that sell goods and services with Play will see a 50% reduction in fees, and that 97% of apps globally do not sell digital goods or pay any service fee.

Google’s new rules are simpler than Apple’s Small Business Program. With Apple’s, developers need to apply to the program, and if they go over $1 million in annual revenue, they no longer qualify for the discounted commission on any sales.

Paul Haddad, on Twitter:

I’m happy to see more App Stores going down the 15% route but the “progressive taxation” nature of it just seems weird to me. It’s not like the Store’s cost/unit go up as more units get sold. Just go 15% across the board.

70/30 percent just feels harder and harder for Apple and Google to defend. Make it 85/15 across the board and it all becomes simpler.

★ Tuesday, 16 March 2021