Alphabet's Google is now halving the total percentage that it is taking from the sales of the developers through Google Play Store. This move shortly follows what its rival Apple did sometime last year.
Google cuts app fees to 15%
According to the story by Bloomberg, the internet giant is now announcing that it will be reducing its total fees from 30% down to 15% for the initial $1 million in revenue on the sales of apps as well as in-app-purchases made every year. After the very first $1 million, developers will then have to pay the total 30% fee.
The program, however, differs in a way from Apple's approach.
The popular iPhone maker now limits its total fee reduction to just smaller developers who have just made $1 million during the previous calendar year. Google then announced in a blog post that it would not stop scaling an app once a particular partner has finally reached revenues of $1 million.
Google and App duopoly
They also noted that their partners are now making $2, $5, or even up to $10 million in just a year that their services are now "still on a path towards a self-sustaining orbit."
It was also noted that that is the reason why they are making this particular reduced fee on the developers' first $1 million in total revenue that they have earned every year.
Both Google and Apple are now at duopoly domination in the whole app economy spreading across the Western world. The reported companies have now been under some intense pressure from regulators and several developers who reportedly complain about the huge app store fees and the reported complex rules that result in raised costs for consumers.
99% of developers will benefit
There is a total of $143 billion that was spent on the mobile app store back in 2020. This is a huge 20% jump compared to the previous year. This was according to the analytics coming from App Annie.
Back in December, it was also noted by Bloomberg News that there were at least three different US states that were investigating the total fees that Google had charged developers and were also preparing to file an official antitrust lawsuit as early as this 2021.
The European Union as well as the UK authorities are now investigating Apple's very own App Store.
Google has also noted that 99% of its total developers will be paying the 15% fee and that there is actually only 1% of developers that had generated more than $1 million in total revenue. The company also noted that only 3% of the developers charge for their services and apps.
This article is owned by Tech Times
Written by Urian Buenconsejo