Apple has been facing a lot of controversies with the 30% cut that is used to keep from apps. And hence it even announced that for apps generating revenue less than $1 million it will charge only a 15% cut. And maybe this is the reason why Google has announced it will be delaying the 30% commission cut. The changes that were scheduled to happen in January 2021 will now take place in September 2021.
Why is Google postponing the policy change?
Google has already been charging a 30% commission cut in its in-app purchases. But it’s plan to charge a 30% cut on every digital transaction got preponed due to the huge backlash in the Korean market. But it is important to note that Google’s policy isn’t as strict as Apple as many developers are accepting direct credit card payments and skipping the 30% cut.
Google also said that its new policy will not affect the game developers much. As most of them are already using their billing system. Though, a small group of Korean developers complained about this and said Google should also lower their commission fees like Apple. The National tax service also said that they will keep a very close eye on Google’s revenue and tax them accordingly.
Apple hasn’t ever been a company that willingly cuts down profit. But the huge backlash over its commission rates finally compelled the company to reduce its margin. Google might also fear that they might also face the same backlash as the Cupertino giant. And hence still they figure out what to do and properly implement the new policies they are postponing the change.
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