Google to slash app store fees by half on developers’ first million in sales
- The Californian giant says it will reduce Play store fees to 15 per cent from 30 per cent
- The new policy will apply to all app developers on the first US$1 million they make
Alphabet Inc’s Google said on Tuesday it would cut the service fee that app developers pay to its app store by half for the first US$1 million in revenue they earn every year.
The move will bring down Google’s app store fees to 15 per cent from 30 per cent, the company said in a blog post.
The decision follows a similar move by Apple Inc, which said in November that it planned to lower its app store commissions for software developers who make US$1 million or less in proceeds each year from the store.
However, Google’s policy change is not just limited to smaller developers.
Both the companies have come under fire from large firms such as Microsoft Corp, Spotify Technology SA, as well as start-ups and smaller companies, that allege the fees deprive consumers of choices and push up the price of apps.