Google has announced in sweeping changes to its Play Store policies that it will only deduct 15% off a developer’s first $1 million in annual revenue. In a blog post on the Android blog, the company says the new changes will go into effect from July 1st.
Developers selling both digital goods and services will enjoy the new changes. With this change, 99% of developers globally that sell digital goods and services with Play will see a 50% reduction in fees.
These funds, Google says, could be used for scaling up and more by developers. It applies to all developers – even those making over $1million in annual revenue. What Google will do, however, is, charge 15 % on the first million, then it will take the usual 30% for any cash above that figure.
It’s quite a different approach to Apple, which announced in November slashing its App Store cut to 15% — from the usual 30% — for small businesses. For the Apple Store, the small business program only applies to developers making less than $1 million in revenue annually. Otherwise, if a developer makes over $1million annually, they will be removed from the program and start paying the usual 30 per cent.
“We believe this is a fair approach that aligns with Google’s broader mission to help all developers succeed,” Google Sameer Samat, VP, Product Management, says.
It plans to reveal more details about the program “in the coming months.”
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