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The logo of Google Play is displayed at the Tokyo Game Show in Chiba, Japan, on September 12, 2019. Photo: Reuters

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.

Apple cuts App Store fees to 15 per cent for small 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.

Google said about 99 per cent of developers on its app store would see a 50 per cent reduction in fees after the move, which is effective July 1.

It was not immediately clear how big the financial impact of the move would be on Google.