Google to cut app store fee by half on developers’ first $1 million in sales

Google to cut app store fee by half on developers’ first $1 million in sales

News: Google to cut app store fee by half on developers’ first $1 million in sales.

(Reuters) – Alphabet Inc’s Google will cut the service fee it charges developers on its app store by half on the first $ 1 million they make in a year after rival Apple Inc last year took a similar step.

Both companies have come under fire from big firms like Microsoft Corp, Spotify Technology SA, as well as startups and smaller businesses claiming the fees, are depriving consumers of choice and increasing app prices.

Google said in a blog post on Tuesday that it would cut its app store fees from 30% to 15% as of July 1, which would affect most of the developers in its app store.

In contrast, Apple announced in November that it would only lower commissions for developers who earn $ 1 million or less from the App Store in a year.

Fortnite developer Epic Games said in a statement to Reuters that Google’s move will only reduce part of the developers’s financial burden.

“Regardless of whether it is 15% or 30%, developers must use Google’s in-app payment services for apps that are obtained through the Google Play Store,” said Epic.

Epic has been at a dispute with Apple since August when the game maker tried to avoid paying internet fees iPhone Manufacturer’s app store by introducing its own in-app payment system, which prompted Apple to ban Fortnite from its store.

Data analytics firm Sensor Tower estimated it could have cost Google about $ 587 million – or about 5% of the $ 11.6 billion it made from Google Play last year – if the service fee cut in the year Would have come into force in 2020.

Reporting by Chavi Mehta and Subrat Patnaik in Bengaluru; Additional coverage from Praveen Paramasivam; Arrangement by Anil D’Silva, Aditya Soni and Shinjini Ganguli

Original Source © Reuters

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