Google Play reduces commission to 15% on first $1 million earned each year

Google has announced that it would reduce the 30% Play Store commission to 15% for the first $1 million that Android developers who use its billing system earn each year, following the similar announcement Apple made in November 2020. 

In a recent article, the company said the discount will take place starting July 1 and it estimates that 99% of developers who use its Play Store billing service will see a 50% decrease in fees. 

Late last year, Apple made a similar announcement saying that it would reduce the 30% App Store fee to 15% for iOS developers earning up to $1 million. 

However, while Apple’s discount doesn’t apply to iOS devs earning more than $1 million, Google’s discount will be available for all Android developers on the first $1 million they make each year.  

“We’ve heard from our partners making $2 million, $5 million and even $10 million a year that their services are still on a path to self-sustaining orbit,” said Sameer Samat, VP of Android and Google Play, in the official article.“This is why we are making this reduced fee on the first $1 million of total revenue earned each year available to every Play developer that uses the Play billing system, regardless of size. We believe this is a fair approach that aligns with Google’s broader mission to help all developers succeed.”

In October 2020, the tech giant updated its Play Store billing policy and announced that it would enforce the 30% commission on the 3% of all Android apps that didn’t pay it. Following the announcement, over 150 Indian startups gathered over a Zoom call to express their complaints and began searching for alternative app stores. 

After the backlash, Google postponed the deadline of the updated billing policy to March 21, 2022 for Indian developers.