Google Reduces Play Store cut by 15% to boost Developers Revenue

Google Play Service Fee

Google finally reduced the Play Store service fee to 15% for the first $1 Million revenue. Earlier Google takes a 30% cut from each Play Store digital purchase for all the developers.  Last year Google has announced that the Google Play service fee is only applicable to developers who offer in-app sales of digital goods and services. Although Google claims that more than 97% of apps globally do not sell digital goods, and therefore do not pay any service fee.

Talking about reduced service fees, if your in-app sales are under $1 Million then you just have to share some basic information with Google to ensure only a 15% Play Store fee. Google in a blog post says that the discount will automatically renew each year if you’re in-app sales remain under $1 Million per year.

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This step of reducing the Google Play service fee will help the new developers. Developers can scaleup the growth of their apps by adding server capacity, hiring more engineers, etc. It’s important to tell you here that in November last year, Apple has also reduced the commission on in-app purchases to 15%. The reduced commission is applicable for developers earning less than $1 million per year only. For Developers earning more than $1 million as in-app purchases, Apple still cut 30% of the revenue as commission.

Coming back to the Google Play Service fee, In India developers who are using Google Play’s billing system to sell digital goods will start receiving the benefit from July 2021. The reduction of the Google Play Service fee will come into effect in July 2021. In the end, Google in its blog post says that “As a platform, we do not succeed unless our partners succeed”. 

Google says that they will share sull detailed guidelines to ensure a 15% Google Play service fee in the coming days.

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