For the longest time ever, many have criticized platforms like Apple’s App Store and the Google Play Store for taking too big of a cut from app sales and in-app purchases. The cut is usually set at 30% which means that for every dollar developers make, 30 cents goes to either Apple or Google.
Now it seems that Google is taking a page out of Apple’s playbook by announcing that starting 1st of July, they will be reducing their commissions to 15%. Do note that this 15% cut will only apply for the first $1 million in revenue that developers earn through the Play billing system. This seems to be targeted at smaller developers versus larger companies who might be able to pull in larger revenues.
Like we said, Google’s decision is a page out of Apple’s playbook as the company had last year announced something similar. According to Sameer Samat, VP of Android and Google Play:
“We’ve heard from our partners making $2 million, $5 million and even $10 million a year that their services are still on a path to self-sustaining orbit.
This is why we are making this reduced fee on the first $1 million of total revenue earned each year available to every Play developer that uses the Play billing system, regardless of size. We believe this is a fair approach that aligns with Google’s broader mission to help all developers succeed.”
Some developers have found ways around the Play Store by offering their apps through their own websites, while some have sold in-app purchases separately outside of the app so that they don’t have to pay Apple or Google a cut of their earnings.