Google follows Apple by halving its Play Store fee to 15%

The reduction applies to the first $1 million of revenue a developer earns each year

Google has announced that it will reduce its Google Play service fee to 15% for the first $1 million (£720,000) of revenue every developer earns each year.

This change will come into effect on July 1 and the company claims that 99% of developers globally that sell digital goods and services through the Play Store will see a 50% reduction in fees.

“These are funds that can help developers scale up at a critical phase of their growth by hiring more engineers, adding to their marketing staff, increasing server capacity, and more,” Sameer Samat, VP of product management, wrote in a statement.

This is widely seen as a response to Apple’s new policy of reducing its App Store commission to 15% for small businesses earning up to $1 million in revenue per year. This came into effect at the start of 2021 and was a considerable reduction from Apple’s long-standing 30% fee on all paid app revenue and in-app purchases regardless of proceeds.

The clear difference between the two policies is that Apple offers a 15% rate if a developer’s net sales are below $1m but if they go over this, earnings will be charged a different rate. However, Google is making this policy accessible to all developers as it will only apply to the first $1m of revenue. 

The move also comes as Google faces a legal challenge from Epic in the UK over its “anti-competitive” Play Store practices. Google and Apple took a 30% cut of all payments made in-game, and Epic, in a bid to avoid losing that revenue, said it would offer a 20% discount to players who purchased in-game currency directly from Fortnite rather than through the app.

Apple and Google removed the game from their official stores which prompted Epic to file lawsuits against both companies. In February, a UK antitrust court blocked Epic’s case against Apple but ruled that the one against Google could still go ahead.

Featured Resources

Modern governance: The how-to guide

Equipping organisations with the right tools for business resilience

Free Download

Cloud operational excellence

Everything you need to know about optimising your cloud operations

Watch now

A buyer’s guide to board management software

How the right software can improve your board’s performance

The real world business value of Oracle autonomous data warehouse

Lead with a 417% five-year ROI

Download now

Recommended

Google accused of 'deceptive' location tracking in fresh US lawsuit
Policy & legislation

Google accused of 'deceptive' location tracking in fresh US lawsuit

25 Jan 2022
Google banned from importing patent-infringing tech following Sonos IP victory
Policy & legislation

Google banned from importing patent-infringing tech following Sonos IP victory

7 Jan 2022
Google, Facebook fined €210 million for making it difficult for users to reject cookies
Policy & legislation

Google, Facebook fined €210 million for making it difficult for users to reject cookies

6 Jan 2022
Google is working with leading PC manufacturers to improve Android on Windows
Google Android

Google is working with leading PC manufacturers to improve Android on Windows

6 Jan 2022

Most Popular

How to boot Windows 11 in Safe Mode
Microsoft Windows

How to boot Windows 11 in Safe Mode

6 Jan 2022
Sony pulls out of MWC 2022
Business operations

Sony pulls out of MWC 2022

14 Jan 2022
Dell XPS 15 (2021) review: The best just got better
Laptops

Dell XPS 15 (2021) review: The best just got better

14 Jan 2022