Google CEO Sundar Pichai speaks at a conference in Brussels on January 20, 2020.
Kenzo Tribouillard | AFP | Getty Images
Google announced on Tuesday that it will reduce Google Play app store rates by 15% over the first million dollars a developer enters into the Google Store each year.
After developers surpass $ 1 million in sales for a year, Google will charge developers their standard 30% fee for in-app purchases and downloads
The decision follows a similar decision by Apple in December, though Apple’s program only applies to developers who earn less than $ 1 million a year on Apple’s App Store.
The change will address some of the developers’ complaints about app stores and their rates, which have been scrutinized by regulators over their control of smartphone operating systems and the price they charge. to developers. Google says it will share more details before the show starting July 1st.
The Google program offers all developers a 15% discount on the first $ 1 million, even those who earn millions of dollars.
“With this change, 99% of developers worldwide who sell digital products and services with Play will see a 50% reduction in commissions,” Google Vice President Sameer Samat said in a blog post. “These are funds that can help developers scale into a critical phase of their growth by hiring more engineers, adding to marketing staff, increasing server capacity, and more.”
While Google hasn’t faced both its Google Play platform and Apple’s App Store because it’s just one of many app stores for Android devices, it still faces challenges from developers and control of regulators and legislators who claim to have too much power over the Android app market.
Epic Games is suing Google after the company removed Fortnite from the Google Play Store and accused Google of monopolizing payments with apps. Epic Games said in its lawsuit that it offered Fortnite outside the Google Play app store, through a manual installation process known as side-loading, but Google makes side-loaded apps work at a disadvantage.
“While a tax cut on Google apps may alleviate a small part of the financial burden that developers have borne, this does not address the root of the problem,” an Epic Games representative said in a communiqué. “Whether it’s 15% or 30%, for apps obtained through the Google Play Store, developers are required to use the paid services of the Google app.”
Google also faces state legislatures in the U.S. proposing bills regulating Google and Apple app stores.
Google would have been hit by a failed North Dakota bill that would have required app stores to allow software developers to use their own payment processing software and avoid the charges Apple and Google charge.
A similar bill passed the Arizona House last week and is still waiting to be debated by the state Senate.