Alphabet Inc’s Google is going to cut down the commission fee collected by app developers by half come into effect on July 1, 2021. Those app developers who make their first $1 million in sales will now pay 15% app store commission instead of 30%.
Why Did Google Cut App Store Fee?
Both the corporations have come under fire from giant corporations like Spotify Technology SA, Microsoft Corporation, etc. Also, small companies, newly-created startups accuse the company that plays store commission fees don’t allow our consumers to choose their own choices that lead to increase application prices. That led Google to think cut App store fee.
What Google Said About Cut App Store Fee?
In their Android-developers blog, Google said that they will reduce the service fee from 30% to 15% they collect from developers when they make their first $1M (USD) by selling digital goods or services.
Will This Decision Help Developers?
Yes! Play Store developers can save now 50% after this decision of Google reducing the service fee of the Play store. So, app developers can now invest these savings in their maintenance. They can hire new android app developers so they can scale up their online business. This decision can help them by increasing their marketing staff to advertise their online products more effectively.
So, there are a lot of benefits developers will get through this decision.
Google is not the first one to make this decision.
Yes, Google is not the first one to boosting developer success on their play store. In November, Apple Corporation made a decision similar to this. They said they would reduce the commission fee who make $1 million or less in proceeds in a year from its app store.
How Fortnite creator Epic Games see this decision?
Google wants to lessen the financial burden of developers. Said by Fortnite creator Epic Games. But he also said that Google’s in-app payment services won’t allow developers to manage their financial burdens whether you bring the commission to 15% from 30%.
Google Decision Will Cost $587M To Google
According to Data Analytics firm, Cut App store fee will cost $587 Million to Google that is 5% of the $11.6 billion it earned from Google Play last year.