Google has planned to lower its Play commission globally, which sells in-app services and digital goods on its marquee store, the company stated.
According to the tech giant, 99% of developers who sell goods on their platform will get a 50% reduction in fees. Moreover, 97% of the apps don’t pay any service fees.
Google’s current move is a bit different from that of Apple, which stated that it will collect 15% instead of 30% of the App Store sales. However, the drop doesn’t involve the iOS apps which exceed $1 million.
Sameer Samat, the VP of Android and Google Play, stated, “Our reliable partners have told us that their services are moving towards a path of self-sustaining orbit. That’s the reason that we have reduced our fees for the first $1 million of the total revenue, regardless of the size. We believe that it is a good move as it aligns with our mission to help developers succeed.”
The founder and CEO of the mobile payment startup Paytm, Vijay Shekhar Sharma, has discarded Google’s move as nothing more than a publicity stunt. Recently, Google pulled Paytm from its Play Store for policy violations.
On the other hand, Epic Games representative said in a statement, “The reduction in Google app tax might lift the financial burden, however, this doesn’t address the root cause of the issue. Whether the reduction fee is 15% or 30%, developers are forced to use Google’s in-app payment services. We believe that competition in the payment processing is the key to a fair app marketplace.”
Sharma is quite hopeful that the tech giant will also look towards other key issues, especially in a country like India. He stated that “we don’t have a proper distribution platform. Google decides the destiny of every developer in India.”
Google’s Samat stated, “We want to see more businesses reach new heights on Android. We are also open to discussions with the Indian Developer Community to sort out new ways to support them technically.”
Samat wrote, “Once the developers confirm some basic information and ensure that we apply 15% properly, this discount will renew every year.”
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