Classics Play Store: Google halves fees for app developers - up to 1 million annual sales
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Google wants to halve the fees for app sales in its Play Store to 15 percent - but "only" for the first million in sales. Smaller developers in particular should benefit.
In December, Apple announced that developers who earn less than one million US dollars a year would only charge 15 percent instead of the previous 30 percent. However, anyone who slips over this sales threshold is subject to the usual 30 percent tax from the first dollar onwards. Google is now following suit, andfees for the first million in sales from 30 to 15 percent.
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Play Store: Fee halving from July 1st
The significant reduction in transaction fees is to start. Unlike Apple, however, Google only wants to charge the first million in sales with a 15 percent fee if the developer exceeds this threshold on an annual basis. In other words: both at Apple and at Google, the smaller developers benefit particularly from the decision, at Google the fee reduction has a positive effect on larger companies.
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Google plans to publish more information about the program in the coming weeks. According to Google manager Sameer Samat, 99 percent of all developers who sell digital goods and services through the Play Store will benefit from the halving of fees. The money that they then have more in their pockets could be invested in increasing the number of employees, advertising expenditure or server capacities, according to Google.
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Fortnite developer Epic: core problem remains
No applause comes from Fortnite developer Epic Games, who was kicked out of the Play Store in the dispute over the fees and their possible evasion and therefore sued. Halving the fees may relieve the app developers to some extent, but the core problem would remain, a company spokesman. Whether 15 or 30 percent - the developers are still forced to use Google's in-app payment option, according to Epic Games.
In the US state of Arizona, both Google and Apple are now threatened with sharp headwinds for their policy of their own payment systems. Because a law already passed by the House of Representatives of the state should be able to force the two app store providers to enable alternative payment options for. The law has yet to be approved by the Senate.
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