Google today announced that, starting July 1, it will be lowering its Play Store commission from 30% to 15% for the first $1 million of revenue developers earn using the Play Store billing system each year, as reported by TechCrunch.
Google estimated that 99% of developers that sell goods and services with the Play Store billing system will see a 50% reduction in fees.
This moves comes nearly three months after Apple introduced a Small Business Program that reduces the App Store’s commission rate from 30% to 15% for developers earning up to $1 million per calendar year in net revenue. For developers exceeding this threshold, Apple’s standard 30% rate still applies, whereas Google is lowering the rate to 15% for the first $1 million earned per year by developers of any size.
Update: A spokesperson for Epic Games shared the following statement with MacRumors, arguing that “competition in payment processing and app distribution is the only path to a fair app marketplace”:
While a reduction in the Google app tax may alleviate a small part of the financial burden developers have been shouldering, this does not address the root of the issue. Whether it’s 15% or 30%, for apps obtained through the Google Play Store, developers are forced to use Google’s in-app payment services. Android needs to be fully open to competition, with a genuinely level playing field among platform companies, app creators, and service providers. Competition in payment processing and app distribution is the only path to a fair app marketplace.