Google plans to cut app store fees in half on the first million dollars in developer sales

(Reuters) – Alphabet Inc’s Google will cut the service fee it charges developers on its app store in half for the first million dollars in revenue they earn each year, it said Tuesday after a similar move by the rival. Apple Inc last year.

Both companies were targeted from large companies such as Microsoft Corp, Spotify Technology SA, as well as startups and smaller companies, who say tariffs deprive consumers of choice and drive up the price of apps.

Google said in a blog post that the move would reduce app store fees to 15% from 30% effective July 1st and would impact most developers on its app store.

Apple Inc said in November that it planned to lower its fees for developers who make $ 1 million or less in revenue every year. from its app store.

Fortnite creator Epic Games said in a statement to Reuters that Google’s move only alleviates some of the developers’ financial burdens.

“Whether it’s 15% or 30%, for apps obtained through the Google Play Store, developers are forced to use Google’s in-app payment services,” Epic said.

Epic has been at loggerheads with Apple since August, when the game’s producer tried to avoid paying commissions on iPhone the manufacturer’s app store by launching its own in-app payment system, which it required Apple ban Fortnite from his shop.

Of the $ 38.8 billion generated from Google Play Store user spending in 2020, Google grossed about $ 11.6 billion off its 30% cut from app makers, according to the data from Sensor tower.

Reportage by Chavi Mehta and Subrat Patnaik in Bengaluru; Editing by Anil D’Silva and Aditya Soni