Google Cuts In-App Fees for Developers

Google Cuts In App Commissions
Google Cuts In App Commissions

It appears that Google is tip-toeing after Apple on the move to slash in-app fees for developers, seeing that the latter did the same thing at the end of 2020. One thing constant is that at both periods, both companies had lawsuits slapped on them.

Recently, Google is facing lawsuits over Play Store issues. In the case of Apple, it was facing lawsuits from Fortnite developer Epic Games.

Google’s latest statement claims that the company is reducing the fees that Google Play developers will pay when users make in-app purchases. The statement said that from the first day of July 2021, Google is reducing the service fee it receives when a developer sells digital goods or services to 15 percent for the first $1 million of revenue every developer earns each year.

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The statement continues to clarify, saying that with the latest change 99 percent of developers worldwide selling digital goods and services with Play will see a fifty percent reduction in fees. The reduction applies to big and small companies.

Already, developers have been contesting payments in the Google Play Store after it made it impossible to circumvent its own in-app payment system. Epic Games took both Apple and Google to court because it was removed from their respective app stores for attempting to bypass their payment systems, and letting users pay Epic directly for in-app purchases.

Epic wanted to lower the cost of the in-app purchases so that users can get some relief since Google and Apple levy 30 percent tax for all in-app purchases. After that, more companies, like Spotify, Protonmail, and others formed a coalition to fight what they believe is unfair dealings by Google and Apple.

The companies claim that both app stores are in a privileged position to promote their own apps over rivals to their ownership of the platforms and the distribution method.


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