- The Google Play Store tariff reductions apply to junior developers starting July 1, 2021.
- The 15 percent discount applies only to engineers earning less than $ 1 million.
- As soon as engineers exceed $ 1 million a year, Google will charge 30% of its regular in-app purchases to over $ 1 million
Google on Tuesday announced it would reduce Play Store fees to 15 percent of the original $ 1 million received by developers. Cutting works for engineers in all countries, including India. Google's latest move to reduce Play Store costs follows Apple's announcement last year that a Cupertino-based giant said it would cut App Store commissions by half to 15% for engineers making less than $ 1 million a year on sales.
Sameer Samat, Vice President, Android and Google Play, on the blog announcing the cut, said, "As of July 1, 2021, we are reducing the service fee received by Google Play to 15% in the first $ 1M (USD) of The revenue generated by each manufacturer each year. With this change, 99% of global manufacturers selling digital goods and services through Play will see a 50% reduction in revenue. "
It is worth noting that the Google Play Store tariff reductions only apply to developers earning less than $ 1 million. As long as engineers exceed $ 1 million in sales within a year, Google will charge an average of 30 percent for in-app purchases and downloads in excess of $ 1 million. For example, if an engineer earns $ 1.5 million a year -30% of Google will work at 0.5 million and not the total amount, Google has confirmed to India Today Tech.
Significantly, the Google Play Store discount applies to developers who sell digital in-app products and services on the platform. Google believes the decline in Google Play Store fees will help younger developers to expand. The company goes on to point out that a reduction in the first $ 1 million in annual revenue is available to all Play engineers using the Play billing system, regardless of size.
Explaining how the cuts will work, the company, in a blog post on Tuesday, said that once the developers had confirmed certain basic details to ensure the 15 percent reduction was used properly. Google has confirmed that the discount will automatically renew each year. The company will share more details in the coming months.
Additionally, Google adds that Indian engineers who are not affiliated with the Google Play Store payment system but who sell digital goods may continue until next March. "For the thousands of developers in India who are already using Play to sell digital goods, they can begin to benefit from this change as soon as it comes into effect in July," Samat said.
It is safe to say that Apple reduced the App Store commission to 15 percent back in November 2020. The new reduced App Store commission was implemented in December last year. Similar to Google, the Apple Store has reduced the commission used in all regions, including India.