Last year, Apple cut its App Store commission from 30% to 15% for developers who have less than $ 1 million in annual revenue. Now Google has followed its steps by introducing similar terms for Android developers on the Play Store.
The Big G offers discounts on the first million dollars a developer earns. This is unlike Apple, which waived the discount if your app makes more than a million dollars a year.
This means you could earn $ 2 million, $ 5 million or more, but Google will still charge a 15% commission on the first million.
The company said that once a developer verifies some basic information about their app and revenue, the search giant will apply the app discount and automatically renew it:
Once the developers have confirmed some basic information to help us understand the linked accounts they have and ensure that we are applying the 15% correctly, this discount will automatically renew each year. We look forward to sharing all the details in the coming months.
The firm said those rules would come into effect from July 2021.
There is one exception to this new change, and that is India. Last year, after Google introduced its Play Store fees, developers across the country were outraged that they didn’t have enough time to incorporate these changes.
At that time, the company said it was delaying the rollout of Play Store fees for Indian developers until April 2022. In an interview with TechCrunch, Vijay Shekhar Sharma, CEO of Indian payments company Paytm, stated that the million dollar bar is very low, and as soon as a developer earns more than that, they have to pay almost 44% fees with taxes.
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Published March 16, 2021 – 15:52 UTC