Google has announced that it is making significant cuts to the service fees it charge to Google Play developers.
The company noted that 97% of developers had free apps and monetized outside the Play Store, and were not subject to fees in any case.
For the 3% of developers who transacted via the Store, Google was cutting most fees to 15% or less.
- For app purchases and in-app purchases, the service fee is 15% for the first $1 million of earnings each year when enrolled and 30% subsequently, which gives smaller developers more help as they scale their business.
- The fee for all subscriptions revenue is 15%, reflecting developer investment in keeping subscribers for the long run. Previously it was 30% for the first year and 15% for the next year onwards, but this did not help companies who had lots of churn.
- Developers in certain programs, like the Play Media Experience Program, may be eligible for a reduced fee based on high content costs.
- In addition to the apps on the Play Store, Google has also announced fee reductions for e-books and music streaming services on the platform, taking its cut down to 10% under certain eligibility conditions.
Google says this means 99% of developers will only pay 15% or less, after the changes come into effect on the 1st January 2022.
Google says they made the changes as part of its effort to listen to developers, but we can not of course ignore the increasing anti-trust pressure on app stores such as Google Play Store and the iOS App Store, which appears to have resulted in significant shifts in policy from both parties.