On Tuesday, March 16, 2021, Google announced a reduction in the Play Store commission. “Starting July 1, 2021, we are reducing the commission Google Play receives when selling digital goods or services to a developer to 15%. first million dollars revenue every developer earns every year” Sameer Samat, vice president of product management at Google, said in a statement.
Once million-dollar revenue is exceeded, developers will have to evacuate traditional 30% commission. Like Apple, Google wants to ease the burden on small developers. “With this change, 99% of developers selling digital products and services with Google Play worldwide will see their fees reduced by 50%” underlines the frame.
Epic Games overcomes discount announced by Google
Tim Sweeney, founder of Epic GamesThe studio behind Fortnite quickly stepped in to criticize Google’s decision. “The vast majority of publishers will benefit from this new 15% rate and therefore be less inclined to fight, but the majority of revenue comes from apps where the 30% rate applies.” Says Tim Sweeney on Twitter. As a reminder, Epic Games saw Fortnite get kicked out of the Play Store last year. Violating the store rules, the publisher offered its own in-app payment system.
Remember: Apple made a similar decision a few months ago. Since January 1, 2021, the Californian group only charges 15% on all in-app purchases or in-app payments made through the App Store. On the other hand, there are only iOS developers who earn less than a million dollars a year.
Like Apple, Google is mainly trying to improve its image by reaching out to small developers. However, the search giant reflecting the Apple brand, keep most of your income. Under these circumstances, Tim Sweeney would use Google and Apple to manipulate developers and “defrauding consumers with app taxes”.
It’s scary for the tech industry to see Google and Apple align their monopoly policies almost at key step. In a free app market, the odds will be much lower for everyone due to competition and will not be subject to divide-and-conquer tactics.
– Tim Sweeney (@TimSweeneyEpic) March 16, 2021
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