Google Confirms To Slash Developer’s Fees By 15% For Selling In-App Digital Goods, A Great Benefit For Developers. Google revealed on Tuesday they are planning to limit Play Store fees for developers making the first $1 million a year to 15%. Developers from all over the world, including India, are affected by the cut.
The new decision taken by Google to slash Play Store developer’s fees by 15% follows Apple’s declaration last year that it will reduce App Store commissions for developers who earn fewer than $1 million in total net revenue by half to 15%.
In a blog article detailing the reduction, Sameer Samat, Vice President, Android, and Google Play, said,
“Beginning July 1, 2021, the service charge Google Play gets for the first $1 million (USD) in revenue earned by each developer will be reduced to 15%. With this move, 99 percent of global developers who offer digital products and services by Play can see a 50% rise in revenue “action in fees” is indeed a phrase that means “auction in fees.”
How Developers Be Benefitted?
Developers who offer in-app digital products and services on the Google Play Store will benefit from the fee cut. Google claims that lowering Play Store fees would aid small developers in developing their businesses.
The organization also clarifies that the discounted charge for the first $1 million in net sales received per year is open to all Play developers, regardless of cost, who use the Play billing scheme.
In a blog post on Tuesday, the company clarified how the discounted fee would work, saying that after developers check some specific facts, it will be able to ensure that the 15% discount is applied correctly.
The discount would automatically refresh next year, according to Google. More information will be published in the coming months by Google.
Developers in India who haven’t merged with the Play Store’s billing system yet sell digital products will continue to do so until March of next year, according to Google.
It is indeed worth recalling that even Apple has implemented the reduction of developer’s fees in the App Store commission from 20% to 15% in November 2020.
By December of last year, the current lower App Store commission had been implemented. The Apple Store, like Google, cut commissions in all countries, including India.